FedEx (FDX, Financial) shares fell more than 5% after hours following a cautious outlook for the current quarter, with earnings predictions falling short of analyst expectations. The company anticipates adjusted earnings per share (EPS) between $3.40 and $4 for the first fiscal quarter ending in August, below the analyst forecast of $4.06 per share.
FedEx, like many other companies, is grappling with significant uncertainties stemming from U.S. trade policies and regional tensions, including recent conflicts involving Israel and Iran. CEO Raj Subramaniam highlighted the unstable global demand environment and evolving trade policies and patterns during an earnings call.
FedEx and UPS are often seen as economic indicators for the U.S., given their partnerships with nearly every type of global business, allowing them to detect commercial trends early.
Despite the cautious outlook, FedEx reported better-than-expected fourth-quarter results, with cost reductions and increased export volumes boosting operating margins. For the quarter ending May 31, the company posted an adjusted profit of $1.46 billion, or $6.07 per share, surpassing the previous year's $1.34 billion, or $5.41 per share. Revenue rose slightly to $22.2 billion from $22.1 billion a year earlier.
