FedEx shares dropped more than 4 percent during after hours trading Tuesday as the company lowered its full year 2019 earnings guidance. It lowered its full year EPS guidance to a range of $15.50 to $16.60, down from $17.20 to $17.80 per share. Analysts expected $17.33 per share.
The company said that its international business weakened this quarter, especially in Europe.
“Global trade has slowed in recent months and leading indicators point to ongoing deceleration in global trade near-term,” said Alan B. Graf, Jr., executive vice president and chief financial officer of FedEx. “These trends, coupled with the change in service mix at FedEx Express, are negatively impacting the segment’s financial results.”
However, the company beat expectations in both earnings per share and revenue this quarter. FedEx reported earnings of $4.03 a share while analysts expected $3.94. It also beat expectations in revenue, reporting $17.8 billion, versus analysts’ prediction of $17.75 billion.
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