Ship heavyweight FedEx (FDX) fiscal Q2 revenue and earnings results fell short of expectations after Tuesday’s close. FDX shares fell sharply in late trading.
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FedEx reported EPS of $3.99 on revenue of $22.2 billion. That marked a 25% gain expected by analysts polled by FactSet, short of the 32% increase to $4.19 a share. Revenue targets a 1.9% gain to $22.36 billion.
Cost-cutting measures and cheaper fuel helped push the shipping leader’s operating margin to 6.4%, up from 5.3% a year ago.
FedEx revenue rose 32% in its first quarter, the company’s first annual increase in five quarters. Revenue has not increased since last year’s August quarter.
According to a report on Tuesday, the analyst consensus had forecast an earnings gain of nearly 22% in fiscal 2024. Revenue was expected to fall 1%. Management kept its full-year earnings outlook steady and cut its revenue guidance on Tuesday.
FedEx shares ended Tuesday’s close with a 62% year-to-date gain. Dec. After breaking out of the cup base on the 8th, the stock remained in a buy zone. Shares fell more than 7% in after-hours trading, threatening a breakout for the stock.
Competitor UPS (UPS) shares lost less than 2% in late trade. Despite a 21% rebound since late October, the stock is down 7% since the start of the year. Its revenue has been in decline for three quarters, with revenue falling in the four quarters through October.
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