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FedEx Shares Plunge 8% Amid Weak Earnings Forecast

3/21/2025

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Summary

Story summary

FedEx shares fell 8% after revising its fiscal 2025 earnings forecast to $18-$18.60 per share.
CEO Raj Subramaniam highlighted challenges in the operating environment and a weak industrial economy.
Analysts raised concerns about trade policy uncertainties affecting demand.
Following the announcement, nine brokerages reduced their price targets for FedEx stock.
FedEx anticipates flat or slightly declining revenue compared to the previous year.

History

Historical Context

FedEx's recent earnings forecast revision echoes the struggles of the 2008 financial crisis, when global trade and industrial demand plummeted. Just as then, trade policy uncertainties now hinder growth, prompting analysts to reassess stock valuations and reflect a cautious outlook for the logistics sector.

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Story summary

FedEx shares fell 8% after revising its fiscal 2025 earnings forecast to $18-$18.60 per share.
CEO Raj Subramaniam highlighted challenges in the operating environment and a weak industrial economy.
Analysts raised concerns about trade policy uncertainties affecting demand.
Following the announcement, nine brokerages reduced their price targets for FedEx stock.
FedEx anticipates flat or slightly declining revenue compared to the previous year.

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