FedEx Cuts Full-Year Guidance After Missing Q1 Earnings Expectations, Shares Fall 13%

FedEx Corporation (NYSE:FDX) slashed its full-year guidance on Thursday after reporting fiscal Q1 earnings that significantly missed Wall Street expectations, largely due to underperformance in its core Federal Express division. Following the disappointing results, shares of FedEx dropped more than 13% pre-market today.

For the first quarter, FedEx posted earnings of $3.60 per share on revenue of $21.6 billion, falling short of analysts' forecasts, which had expected earnings of $4.86 per share on revenue of $21.96 billion.

The Federal Express division, a crucial part of the business, saw its operating margins shrink to 5.2% from 7.1% in the same period last year, highlighting ongoing challenges in that segment.

Looking ahead, FedEx narrowed its fiscal 2025 outlook for adjusted earnings per share to a range of $20.00 to $21.00, down from the previous estimate of $20.00 to $22.00. Revenue growth for the year is now projected to be in the low single-digit range, compared to the earlier forecast of low-to-mid single-digit growth.

Despite the lowered outlook, FedEx announced plans to repurchase an additional $1.5 billion in stock during fiscal 2025, bringing its total planned buybacks for the year to $2.5 billion.