FedEx Battles Trade Volatility With Reinstated Guidance

about 1 month ago

Lisa Mateo / Paul Souni

"Their shares have been up as much as 5% before the bell ... a big part of the reduction to adjusted operating profit comes from lower shipments from China to the US, but on the positive side, they did reinstate their profit and sales forecast with revenue expected to grow by 4% to 6% in the current fiscal year."

FedEx (FDX) faces a $1 billion hit due to trade volatility and customs cost hikes, yet management reinstated profit and sales forecasts, suggesting resilience. The company is also seen as a bellwether for the overall economy.

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