FedEx Warning Has Deeply Negative Stock Futures

Late yesterday, FedEx offered a poor outlook for fiscal 2023 and that sent its stock down 21.5%. The business is an economic gazebo and that has dampened the mood considerably.

“Global volumes declined as macroeconomic trends have deteriorated markedly later in the quarter, both internationally and in the United States. We are tackling these headwinds quickly, but given the speed at which conditions have changed, first quarter results are below our expectations,” said Raj Subramaniam, president and chief executive officer of FedEx Corporation in a statement. communicated. . “While this performance is disappointing, we are aggressively accelerating cost reduction efforts and evaluating additional measures to improve productivity, reduce variable costs and implement structural cost reduction initiatives. These efforts are aligned with the strategy we set out in June, and I remain confident in achieving our fiscal 2025 financial goals.”

The question is, has online shopping during the pandemic distorted the delivery industry or is it really a macro issue? Is it simply a shift in spending from services to goods, which the markets were anticipating?

Also remember that FedEx issued a similar warning exactly three years ago and the economy was doing very well.

Either way, S&P 500 futures are down 1.3% just before the open. It won’t be pretty.


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