FedEx to offer an express recovery? [Video]
|FedEx shares were under pressure last week after the company announced poor preliminary results. The EPS was USD 3.44 vs the expected 5.10. The company also withdrew FY23 earnings guidance. With the announcement, the shares were down -11% after-market.
The CEO said global volumes declined as macroeconomic trends slightly worsened later in the quarter, both internationally and in the US. To try and address this the company announced a string of measures including deferring staff hiring, reducing flight frequency, consolidating sort operations, and reducing Sunday operations. Will these enacted measures support FedEx shares higher from here?
The seasonal outlook is strong for FedEx stock from now until early December with an annualised return of over 60%. Time to buy FedEx on Express recovery hopes?
Major trade risks: The major trade risk is that the global macroeconomic outlook continues to worsen and weighs on FedEx stock.
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