Staff Reports
In Thursday's extended session, shares of FedEx fell 17%.
It will only get worse, according to the business.
During his afternoon War Room show, Steve Bannon referred to the news as "massive."
The corporation promised to reduce costs "aggressively" and stated that it was considering other strategies to "improve productivity."
MarketWatch said:
The logistics business yanked its year-end estimate, predicted much lower quarterly profits and lower revenue, and warned that fiscal 2023 is about to get worse, causing FedEx Corp. shares to drop over 17% during the extended session on Thursday.
Global volume declines during the fiscal first quarter, according to FedEx, were a problem that grew worse as the period came to a close. It anticipates that in the second fiscal quarter, business conditions "would further deteriorate."
The company projected preliminary adjusted earnings for the fiscal first quarter of $3.44 per share on sales of $23.3 billion.
When the company releases a full financial snapshot on Sept. 22, analysts surveyed by FactSet anticipate it will report adjusted EPS of $5.14 on sales of $23.6 billion for the quarter. A revised prognosis and a description of its cost-cutting strategies will be provided at that time, according to FedEx.
The $500 million revenue loss in these regions was attributed by FedEx to "macroeconomic difficulties" in Asia and "service problems" in Europe. Additionally, according to the business, FedEx Ground revenue is around $300 million below expectations.
FedEx pledged to make "aggressive" cost reductions and stated that it was considering various strategies to "enhance productivity."
The preceding is a summary of an article that originally appeared on GATEWAY PUNDIT.
