FedEx Earnings Beat with Tariff Headwinds
"Yeah, I want to start with FedEx, ticker FDX. Stock up just about 3% right now. This comes after the company reported earnings that were better than expected and the fact that it maintained its full year sales and profit outlook. The big question mark, though, has been the impact of tariffs. The company noting that they expect a $1 billion hit from trade volatility this year."
FedEx (FDX) delivered better-than-expected earnings and maintained its full year outlook despite caution regarding a $1 billion tariff hit. The domestic business is performing well, contributing to a rebound from lows near $200 to current levels around $233.
FedEx Beats Earnings and Refreshes Guidance
"The company providing its fiscal first quarter numbers... EPS, $3.83 a share. That is a beat. It looks like on the revenue side, $22.2 billion, a modest beat there as well... they did come out with some numbers, sentiment had been so low on this name right now being taken as good news. We'll see if that sticks. Shares up about 3.7% in the after hours."
FedEx reported a solid first quarter with an EPS beat and modest revenue beat, breaking a history of flat/declining revenue. The reissuance of full-year profit guidance (adjusted EPS between $17.20 and $19) has positively impacted after-hours trading.
FedEx Offsets Trade Volatility Concerns with Strong Guidance
"What FedEx did was they offset a potential concern about the tariff hit with a pretty solid guidance. Expect sales to rise around six percent into the end of the year. And they also reinstated their full year outlook."
FedEx's earnings report delivered a strong performance by mitigating tariff-related concerns. Despite a warning of a $1 billion hit from trade volatility, the company provided a robust sales guidance and reinstated its full year outlook, signaling clarity ahead of the holiday season.
FedEx Battles Trade Volatility With Reinstated Guidance
"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.
FedEx Reinstates Profit Outlook Signaling Stabilization
"Now it's paired those gains ever so slightly. It's still up over 6%. They reinstated their full year profit outlook. They said adjusted earnings will be $17.20 to $19 a share."
FedEx, after being battered earlier in the year and pausing its guidance due to tariff uncertainties, has resumed its full-year profit outlook. Despite lingering concerns with international export volumes, the updated adjusted earnings range signals renewed confidence and potential stabilization in the company's near-term performance.