The world's biggest package delivery group issued its second profit warning of the year amid slowing global trade and increasing pressures from rival shipping companies
FedEx said non-GAAP earnings for the three months ending in November, the group's fiscal second quarter, fell 37.7% from last year to $2.51 per share, well shy of the Street consensus forecast of $2.76. Group revenues, FedEx said, slipped 2.8% to $17.3 billion but came in just ahead of analysts' forecasts.
"The quarter just ended is an anomaly because of the compressed shipping season before Christmas, necessitating a significant bow wave of expenses and volumes that will largely fall in our third fiscal quarter," CEO Fred Smith told investors on a conference call late Tuesday. "In addition, this quarter has seen significant effects on the industrial economy due to continuing trade disputes, including reductions in international air freight and tepid at best B2B domestic parcel and freight shipping."
Jim Cramer said that he thinks it might be time for FedEx to consider suspending guidance since the company has missed guidance in the last five straight quarters.
"I think they're being irresponsible by offering guidance," said Cramer.
Online real estate platform CrowdStreet delivers investors a new way to diversify their portfolios with real estate. Individual investors can use CrowdStreet’s leading online marketplace to connect with a wide array of commercial real estate opportunities and projects to make investing in real estate easy! Download the Real Estate Guide.