FedEx Stock Is Falling Wednesday: What's Going On?
Portfolio Pulse from Adam Eckert
FedEx Corp (NYSE:FDX) stock fell after reporting Q2 revenue and EPS below estimates, with revenue at $22.2 billion against estimates of $22.39 billion, and EPS at $3.99 versus $4.19 expected. Despite lower revenue, operating income increased, attributed to the company's DRIVE program. FedEx expects a low-single-digit percentage decline in full-year 2024 revenue and forecasts earnings of $17 to $18.50 per share, below the $18.25 estimate. Analysts at JPMorgan and Barclays lowered their price targets for FedEx following the results.
December 20, 2023 | 1:34 pm
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NEGATIVE IMPACT
FedEx reported lower-than-expected Q2 results, with revenue and EPS missing estimates, leading to a decline in stock price. Analysts have reduced price targets, indicating potential concerns about the company's near-term performance.
The negative impact on FedEx's stock price is due to the earnings miss for Q2, which is a significant event for investors. The reduction in price targets by analysts from JPMorgan and Barclays further suggests a bearish outlook in the short term. The company's own forecast of a decline in full-year 2024 revenue and lower-than-expected earnings guidance adds to the negative sentiment.
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