FedEx signaled caution ahead, with a projection to the current quarter below analysts expectations, leading delivery giant actions to fall more than 5% in post-market negotiations.
The Memphis -based company predicted an adjusted profit of $ 3.40 to $ 4 per share for the first fiscal quarter, below estimates of $ 4.06 analysts per share, according to data compiled by LSEG.
FedEx and its rival UPS are seen as economic thermometers because they work with virtually all types of companies globally and detect business trends before they become widely visible.
FedEx refused to provide a profit forecast for the year, overshadowing better results than expected for the fourth fiscal quarter, closed on May 31, when cost cuts and better export volumes raised their operational margins, according to the company.
The adjusted profit was $ 1.46 billion, or $ 6.07 per share, for the fourth fiscal quarter ended on May 31, above the adjusted profit of $ 1.34 billion, or $ 5.41 per share, a year earlier. Revenue rose only 0.5%, reaching US $ 22.2 billion.
Analysts, on average, expected profit of $ 5.81 per share of a revenue of $ 21.79 billion, according to LSEG.
