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FedEx misses earnings estimates, cuts full-year EPS forecast again

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FedEx misses earnings estimates, cuts full-year EPS forecast again
FILE PHOTO: A Fedex truck makes deliveries and pick-ups in the Back Bay in Boston, Massachusetts, U.S., June 18, 2018. REUTERS/Brian Snyder   -   Copyright  BRIAN SNYDER(Reuters)
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(Reuters) – Package delivery company FedEx Corp missed analysts’ estimates for quarterly profit and cut its full-year earnings per share forecast for the second time, citing weaker global trade growth, sending its shares down 5 percent on Tuesday.

The Memphis, Tennessee-based company cut its fiscal 2019 adjusted earnings per share forecast to a range of $15.10 to $15.90, from $15.50 to $16.60 previously.

FedEx, which is seen as a bellwether for the global economy, in December slashed its full-year profit forecast, blaming weak growth in Europe and a cooling Chinese economy due to an ongoing trade war with the United States.

“Slowing international macroeconomic conditions and weaker global trade growth trends continue…,” Chief Financial Officer Alan Graf said in a statement.

The company’s adjusted net income fell to $797 million (600.7 million pounds), or $3.03 per diluted share, in the third quarter ended Feb. 28, from $1.02 billion, or $3.72 per share, a year earlier.

Total revenue rose nearly 3 percent to about $17 billion.

Analysts on average had expected earnings of $3.11 per share and revenue of $17.67 billion, according to IBES data from Refinitiv.

(Reporting by Lisa Baertlein in Los Angeles and Ankit Ajmera in Bengaluru; Editing by Sriraj Kalluvila)

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