After the closing bell on Dec 17, transport bellwether FedEx FDX upset buyers with weak second-quar
After the closing bell on Dec 17, transport bellwether FedEx FDX upset buyers with weak second-quarter fiscal 2020 outcomes. The courier firm missed the estimates on each the highest and the underside traces and slashed its fiscal 2020 outlook for the second time amid slowing world commerce and rising stress from rival transport firms.
Earnings per share got here in at $2.51, lacking the Zacks Consensus Estimate of $2.79 and declining from the year-ago earnings of $4.03. Revenues dipped 2.8% yr over yr to $17.32 billion and fell shy of the estimated $17.57 billion (learn: 5 Sector ETFs to Win After Robust November Jobs Data).
For fiscal 2020, the corporate slashed its earnings per share forecast to $10.25-$11.50 from $11.00-$13.00 on account of higher-than-expected growth prices, together with the launch of seven-day supply, misplaced revenues from its cut up with Amazon AMZN and the continuing U.S-China commerce standoff. The brand new vary consists of 51 cents per share in tax advantages on account of a decrease tax price.
Following the weak outcomes, shares of FDX tumbled practically 9% in yesterday buying and selling. FedEx has a Rank #3 (Maintain) and an unimpressive VGM Rating of D. It presently falls below a bottom-ranked Zacks trade (bottom 27%).
ETFs in Focus
The FedEx report has put transport ETFs — iShares Dow Jones Transportation…