FedEx withdraws guidance, takes Royal Mail down with it

Royal Mail shares were hammered by the negative read-across in markets from US peer FedEx's decision to withdraw its full-year guidance after Thursday's close.

The US outfit also guided analysts towards fiscal first quarter profits of $3.44 on sales of $23.3bn. That compared to consensus forecasts from FactSet for $5.14 and $23.6bn, respectively.

It cited "macroeconomic weakness" in Asia and "service challenges" in Europe.

FedEx said volumes fell around the world during its first quarter, worsening towards the end of the three-month stretch and business conditions were expected "to further weaken" in the second quarter.

Sales were seen coming in at between $23.5-24.0bn in the second quarter for earnings per share of $2.75 "or greater".

Analysts on the Street on the other hand had penciled-in sales of $24.9bn and EPS of $5.48.

The company was next due to announce results on 22 September, when it could update its forecasts and outline cost-cutting plans.

As of 0939 BST, shares of FedEx were changing hands at $164.49 or 19.71% beneath their closing level on Thursday.

Shares of Royal Mail meanwhile were down by 11.68% to 220.70p.