FedEx Faces Turnaround Challenge Amid Mixed Earnings

about 1 month ago

Nora Melinda

"Speaking of comeback stories, you're tracking another one that is waiting for a turnaround to take hold. We're looking at shares of FedEx. This is ticker FDX. Shares are down more than 1% right now. It did raise the low end of its profit outlook for this year and it reported earnings that topped expectations. Uh this of course was really helped by volume and pricing gains in the US. But, you know, we are seeing some weakness, especially as investors are trying to see whether or not the CEO's plan will really map out. They're seeing a string of cost headwinds, including the grounding of its MD11 plane. So, that's really weighing on sentiment today in the trade."

The FedEx commentary balances a positive earnings beat and improved profit outlook with significant operational headwinds, including cost pressures and uncertainty over the CEO's turnaround plan.

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