FedEx (NYSE:FDX) Corp shares skidded more than 7% in Tuesday’s after-hours session after the company’s second quarter 2024 financial results failed to deliver on Wall Street’s expectations.
FedEx (NYSE:FDX) recorded adjusted earnings per share (EPS) for the period of $3.99, falling short of the analyst consensus forecast of $4.19.
Its 2Q revenue of $22.2 billion, meanwhile, also narrowly missed the $22.37 billion expected.
"FedEx has delivered an unprecedented two consecutive quarters of operating income growth and margin expansion even with lower revenue, clear evidence of the progress we are making on our transformation as we navigate an uncertain demand environment," FedEx CEO Raj Subramaniam said in a statement.
Looking ahead, the company reduced its full-year revenue forecast after United Parcel Service (UPS) won back customers lost during its hard-fought labor negotiations.
FedEx now expects a low-single-digit percentage decline in revenue year over year, compared to the previous forecast of flat revenue growth.
Shares of FedEx have gained 58% year to date as of Tuesday’s closing price.