FedEx Cuts Profit Forecast, Blaming Weak Economy
By: Justin Menza
AP
FedEx warned on Tuesday that its latest quarterly earnings will come in below earlier forecasts.
FedEx blamed weakness in the global economy, which constrained revenue growth, for the profit warning.
The shipping giant now expects earnings for the quarter ended Aug. 31 to range between $1.37 to $1.43 a share, compared to $1.46 a share last year.
The company had been looking for earnings of $1.45 to $1.60 per share. On average, analysts were looking for $1.56 per share, according to data from Thomson Reuters.
Shares of FedEx were off sharply in late trading, with rival UPS also falling.
(Click here for after-hours quotes on FedEx.)
FedEx will report earnings on September 18 before the market opens.
The shipping company warned on Tuesday that fiscal first-quarter earnings will come in below earlier forecasts, citing global economic weakness.