FedEx Stock Slips After 2025 Forecast Cut, Mixed Q3 Earnings: Retail Sees Recession Warnings
The parcel-delivery firm forecasted adjusted earnings of $18 to $18.60 per share for the fiscal year, compared with $19 to $20 per share projected earlier.
FollowFedEx (FDX) stock fell 5.6% in extended trading on Thursday after the company cut its 2025 fiscal year forecast amid tepid industrial demand in the U.S.
The parcel-delivery firm forecasted adjusted earnings of $18 to $18.60 per share for the fiscal year, compared with $19 to $20 per share projected earlier. The company had already cut its outlook in December.
FedEx also said it expects 2025 revenue to be flat to slightly down year-over-year, compared to the prior forecast of flat revenue.
“Our revised earnings outlook reflects continued weakness and uncertainty in the U.S. industrial economy, which is constraining demand for our business-to-business services,” FedEx Chief Financial Officer John Dietrich said.
According to FinChat data, the company's fiscal third-quarter revenue was $22.2 billion, while analysts expected it to be $21.88 billion.
It posted adjusted earnings of $4.51 per share for the quarter ended Feb. 28, which fell short of consensus estimates of $4.57 per share, according to Bloomberg.
The company said its Federal Express segment saw increased U.S. and international export volume, which was offset by higher wage and purchased transportation rates and the expiration of the U.S. Postal Service contract.
FedEx CEO Raj Subramaniam said the company navigated a volatile demand environment throughout the quarter alongside high inflation and weather events.
The company also said it is progressing towards the spin-off of FedEx Freight.
Retail sentiment on Stocktwits slumped to ‘extremely bearish’ (10/100) territory from ‘extremely bullish’(75/100) a day ago, while retail chatter rose to ‘extremely high.’
FDX’s Sentiment Meter and Message Volume as of 10:42 p.m. ET on March 20, 2025 | Source: Stocktwits
Several retail traders wondered if the economy is entering a recession following the earnings report of the economic bellwether.
On Wednesday, the U.S. Federal Reserve slashed growth expectations for the U.S. economy amid concerns over President Donald Trump's tariff-related policies.
FedEx shares have fallen 12.5% year-to-date (YTD).
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