FedEx (FDX) withdrew its full year earnings guidance and reported preliminary first quarter results that fell short of Wall Street estimates, sending shares tumbling in extended trading on Thursday.
"Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S." FedEx CEO Raj Subramaniam warned in the release. "We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first quarter results are below our expectations."
FedEx shares fell as much as 15% in after hours trade.
Cost-cutting measures outlined by FedEx include reducing flights, temporarily parking aircraft, closing more than 90 FedEx office locations, and deferring hiring plans.
“We are aggressively accelerating cost reduction efforts and evaluating additional measures to enhance productivity, reduce variable costs, and implement structural cost-reduction initiatives," Subramaniam added.
Adjusted earnings for the company's fiscal first quarter were $3.44 per share, missing Wall Street’s estimate of $5.10, on revenue of $23.2 billion. Back in June, the company said it expected full-year earnings per share to fall in a range of $22.50-$24.50.
The preliminary results from FedEx, which is viewed as a bellwether for the global economy, sent shares of UPS (UPS) and Amazon (AMZN) lower in after hours trading; UPS shares lost more than 5% while Amazon was down around 2% late Thursday.
Other after hours movers
Bowlero Corp. (BOWL): Shares of the bowling operator jumped 8% in after hours trading after the company’s fiscal fourth quarter sales topped expectations. Bowlero reported revenue of $267.7 million, up 68% year-over-year, and beat Wall Street’s estimate of $194 million. Net income totaled $6.9 million for the quarter.
Texas Instruments (TXN): The company raised its dividend by 8% to $1.24 per share and authorized an additional $15 billion in buybacks. The higher dividend marks the 19th consecutive year of increases and will be payable November 15, 2022 to shareholders of record on October 31, 2022.