FedEx reduced its full-year earnings forecast on Thursday after missing expectations for its fiscal first-quarter results, driven by a slowdown in its core Federal Express division.
Following the report, FedEx Corporation (NYSE: FDX) saw its shares drop by 9% in after-hours trading.
The company posted adjusted earnings of $3.60 per share on revenue of $21.6 billion, falling short of analysts’ predictions, which anticipated earnings of $4.86 per share on revenue of $21.96 billion, according to Capital IQ data.
The Federal Express segment experienced a decline in profit margins, dropping to 5.2% in Q1, compared to 7.1% a year ago.
For the full fiscal year 2025, FedEx revised its adjusted earnings guidance to a range of $20.00 to $21.00 per share, down from its previous forecast of $20.00 to $22.00. Revenue growth is now expected to rise by a low single-digit percentage year-over-year, lower than the earlier projection of low-to-mid single-digit growth.
In addition, FedEx announced plans to repurchase an additional $1.5 billion worth of its stock in fiscal 2025, bringing the total buyback to $2.5 billion.
