FedEx Corporation’s Estimates Reduced on Adverse Outlook
<p>Analysts at Oppenheimer reduced their estimates on <a href='https://financialmodelingprep.com/financial-summary/FDX'>FedEx Corporation (NYSE:FDX)</a> given the adverse outlook. </p>
<p>On September 15, the company pre-announced Q1/23 adjusted EPS of $3.44 (down 21% year-over-year), compared to the Street estimate of $5.14. Quarterly revenue grew 5% year-over-year. However, Q1 adjusted operating income/margin was down 18%/150bps.</p>
<p>On September 22 Q1 conference call, the company reaffirmed underperformance stemmed from "global volume softness that accelerated in the final weeks of the quarter" and service challenges in the Express segment. </p>
<p>Maintaining yield management focus, the company implemented Q1 cost actions, although corresponding OPEX reduction lagged the volume declines. </p>
<p>Considering current business trends, the analysts lowered their 2023-2025 estimates, now expecting adjusted EPS of $14.78 (down 28% year-over-year), $17.30 (up 17% year-over-year), and $19.34 (up 12% year-over-year) for 2023, 2024 and 2025, respectively.</p>

NYSE:FDX