FedEx's Profit Falls Below Expectations, Shares Plummet
FedEx reported quarterly profit that fell short of analysts' expectations and cut its full-year revenue forecast due to a drop in demand from the U.S. Postal Service, causing shares to plummet by 9.8%. The company's adjusted earnings for the quarter increased by 23%, but still missed estimates. FedEx expects revenue to continue declining due to volatile macroeconomic conditions. The company plans to repurchase $1 billion of common stock in an effort to improve profitability. Operating income at the air-based Express unit dropped by 60% due to reduced volume from the U.S. Postal Service, while the Ground division saw a 51% increase in operating income.