FedEx Corporation (NYSE: FDX) shares were plummeting Tuesday after the delivery service reported a second-quarter earnings miss.
Earnings came in at $2.51 per share, missing estimates by 33 cents. Sales came in at $17.3 billion, missing estimates by $270 million.
FedEx guided to 2020 EPS of $9.10 to $10.35 against a $12.03 estimate.
“Fiscal 2020 is a year of continued significant challenges and changes for FedEx, particularly in the quarter just ended due to the compressed shipping season,” Frederick Smith, the company's chairman and CEO, said in a statement.
FedEx has "significantly enhanced" its e-commerce capabilities, and the changes have been well-received and resulted in record volumes, he said.
"While we have experienced some higher-than-expected expenses this quarter, we forecast FedEx Ground operating margins to rebound to the teens in our fiscal fourth quarter as the bow wave of costs for these changes is absorbed.”
FedEx shares were down 6.7% at $152.30 in Tuesday's after hours session.
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