U.S. Markets close in 1 hr 53 mins

FedEx (FDX) Misses 3rd Straight Quarter, Lowers Guidance

Mark Vickery
Wall Street closed higher on Wednesday after the Fed kept the federal fund target rate unchanged.

Global logistics and delivery major FedEx FDX has reported fiscal Q3 2019 results after the closing bell this afternoon. The Zacks Rank #4 (Sell)-ranked company came in below consensus estimates on both top and bottom lines, reporting $3.03 per share on $17.0 billion in quarterly revenues, compared with $3.10 per share and $17.64 billion expected. Shares in late trading fell on the news, currently down more that 4% in late trading.

Clearly, delivery and logistics on a global scale is being hampered by economic slowdowns in Asia (particularly China) and the European Union (EU). Weaker global trade growth has also led the company to lower guidance for both fiscal Q4 (now $4.58 - 5.38 per share expected) and full-year 2019 ($15.10 - 15.90 expected), putting the previous Zacks estimates at or near the very highest end of this range.

This marks the second time FedEx has slashed guidance, and the company is now trailing rival United Parcel Service UPS in terms of performance. It's also the third quarter in a row FedEx has missed the Zacks consensus, as well as the sixth quarter in the last 10. Heavy exposure to the EU relative to its main competitors may be the difference here. FedEx's conference call is scheduled for 5:30 pm ET.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
FedEx Corporation (FDX) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research