FedEx withdraws guidance, takes Royal Mail down with it
FedEx Corp.
$297.72
04:35 22/11/24
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.
FTSE 250
20,567.25
14:35 22/11/24
FTSE 350
4,546.63
14:35 22/11/24
FTSE All-Share
4,502.17
14:35 22/11/24
Industrial Transportation
4,550.00
14:34 22/11/24
International Distribution Services
348.80p
14:35 22/11/24
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.