FedEx sent shock waves through the markets on Friday after the company withdrew its full-year guidance and warned that a global recession is brewing.
FedEx’s stock plummeted by more than 22% after the market opened following news that it expects to fall $500 million short of its revenue target, the biggest drop since at least 1980. The news is an indicator that global demand is slowing, which could portend a recession.
The company said it expects first-quarter earnings to clock in at $3.44 per share, far below the average analyst estimate of $5.10.
“Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S. We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first quarter results are below our expectations,” FedEx CEO Raj Subramaniam said in a statement.
https://www.washingtonexaminer.com/policy/economy/fedex-shipping-recession
