FedEx (FDX, Financials) shares sank Wednesday after the company declined to issue full-year financial guidance and projected lower-than-expected Q1 earnings, overshadowing its stronger-than-expected fiscal Q4 results.
The shipping giant reported Q4 results after Tuesday's close that topped analyst estimates. However, its Q1 adjusted earnings forecast of $3.40 to $4.00 per share came in below the consensus estimate.
Investors appeared more concerned with what FedEx didn't say: the company chose not to issue a full-year revenue or profit forecast, a key item some analysts had flagged as critical ahead of the report.
Shares fell 5.5% in early trading Wednesday, extending the stock's year-to-date decline to about 23%.
The lack of forward guidance leaves Wall Street uncertain about how FedEx expects to navigate a mixed macro environment, including weaker global shipping volumes and shifting e-commerce trends. Despite cost-cutting efforts and operational changes, visibility into near-term profitability remains cloudy.
