FedEx Corp (NYSE:FDX, ETR:FDX) shares fell more than 9% in afterhours trading after the freight company’s third quarter earnings missed expectations and it slashed its full-year profit outlook.
For Q3, FedEx reported earnings per share (EPS) of $4.51, below estimates of $4.63.
Revenue of $21.88 billion was ahead of the Wall Street consensus of $22.16 billion.
The company also reduced its full-year earnings outlook, now expecting EPS in the range of $15.15 to $15.75, down from its prior forecast of $16.45 to $17.45.
It now expects revenue to be flat to slightly down year-over-year, compared to its earlier forecast of flat.
“Our revised earnings outlook reflects continued weakness and uncertainty in the US industrial economy, which is constraining demand for our business-to-business services,” CFO John Dietrich said in a statement.
“Despite this uncertainty, I'm confident we are well positioned to execute on our transformation initiatives and create stockholder value.”
The company continues to expect to achieve $2.2 billion in cost reductions from its DRIVE efficiency program.
Shares of FedEx were down 9.2% at about $223 before Friday’s opening bell in New York.