FedEx Shares Tumble Premarket After Profit Warning
16 September 2022 - 9:04PM
Dow Jones News
By Colin Kellaher
Shares of FedEx Corp. slid 20% in premarket trading Friday after
the package-delivery giant said its quarterly revenue and earnings
would fall short of expectations amid declining worldwide
volume.
The Memphis, Tenn., company also said it was cutting costs and
pulled its full fiscal-year guidance.
Analysts at Citigroup, who last week had cut their rating on
FedEx to neutral from buy and lowered their price target on the
stock to $225 from $270, reduced their target to $180 after the
update.
In a research note, analysts Christian Wetherbee and Elijah
Winski said FedEx's preliminary fiscal first-quarter numbers were
"significantly worse than we feared," and they said they have
greater certainty about lower fiscal-year results.
FedEx shares, which closed Thursday at $204.87, were down to
$163.99 in premarket trading. A 20% drop in regular trading would
erase more than $10 billion in market capitalization.
Shares of rival United Parcel Service Inc., which closed
Thursday at $185, shed 6.8% premarket.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
September 16, 2022 06:49 ET (10:49 GMT)
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