FedEx stock fell hard into early trade Friday, after reporting late Thursday fiscal first-quarter results came in far below analyst consensus views.
The Memphis. Tenn.-based delivery heavyweight reported earnings per share of $3.60, down from $4.55 a year ago and below the consensus target of $4.76. FedEx revenue dipped to $21.6 billion, vs. $21.7 billion a year ago. Analysts expected $21.93 billion.
Management trimmed its full-year revenue guidance to low single digits, down from low-to-mid single digits. It set an EPS target, minus items, of $20 to $21 per share. Consensus views see $20.71.
The company also said it had completed a $1 billion share repurchase initiative during the quarter. The company's board approved a $1.5 billion stock buyback for 2025.
FedEx Stock
FedEx shares plummeted nearly 15% in morning trade. Shares have looped through a series of incremental gains since August 2023, rising 19% in 2024 through Thursday's close.
FedEx stock rose 4.9% for the week through Thursday. Friday's move sent shares sharply below their 10-week and 40-week moving averages, to their lowest level since June.
Shipping and delivery peer United Parcel Service caught some of the FedEx downdraft. It traded 3.6% lower in early trade Friday. UPS shares have been wrapped up in a long, steady decline started in February, 2022.
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