FedEx withdrew its FY23 earnings guidance
In its reporting of Q1 results, which were not good.
- adj. EPS US$3.44 (expected $5.10)
- revenue US$23.2bn (expected $23.54bn)
- preliminary Q1 Operating. income $1.23bn (vs. $1.74bn that was expected)
FedEx says that first quarter results were adversely impacted by reduced volumes of shipments globally. The fall intensified in the final weeks of the quarter. Also:
- macroeconomic weakness in Asia
- services weakness in Europe
The firm cut costs:
- deferral of hiring
- closed more than 90 FedEx locations
- cancelled some planned increases in network capacity
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ps. This would appear to pour cold water on speculation fo a 100bp rate hike from Federal Open Market Committee (FOMC) next week (September 20 & 21 meeting). Totally drown it IMO.
