FedEx plunges after slashing forecast and ‘breathtakingly bad’ results
Split from Amazon weighs on the company’s sales which are also suffering from weaker pricing, trade tensions and the timing of Thanksgiving in the US
18 December 2019 - 18:59
Dallas — FedEx Corporation plunged on Wednesday after cutting its profit forecast for the second straight quarter, as weak international demand hurt sales and the courier ramped up investment to handle soaring e-commerce deliveries.
The results for the company’s fiscal second quarter were “breathtakingly bad”, with weakness in both the ground-delivery unit and air-cargo business, said Deutsche Bank analyst Amit Mehrotra. Adjusted earnings will be no more than $11.50 a share in the fiscal year ending in May, down from the previous expectation of as much as $13, FedEx said late on Tuesday...
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