FedEx Says Earnings Will Be Fine After Its Rival UPS Forecasts A Big Miss

FedEx just wants to make sure the market knows things are fine.

In a release on Friday, FedEx affirmed its earnings guidance and said it continues to expect a “modest net benefit from fuel.”

The announcement from FedEx come after its shipping rival UPS warned on Friday morning that its earnings would widely miss expectations in the fourth quarter.

UPS said in its release that “underperformance” in its US segment weighed on results. UPS added that, “Peak plans were designed to provide high quality service for volume surges. The extra capacity was necessary to process the extreme spike in package volume on Cyber Monday and peak day, December 22. However, demand was less than expected on other days. This resulted in a sub-optimised network during peak season.”

On Friday, UPS shares were down more than 9% in early trade. FedEx shares were down about 1% in sympathy and were halted ahead of this announcement.

Here’s the full release from FedEx:

MEMPHIS, Tenn.–(BUSINESS WIRE)–FedEx Corporation (NYSE: FDX) reaffirms its fiscal 2015 earnings forecast of $US8.50 to $US9.00 per diluted share. The outlook assumes continued moderate economic growth and a modest net benefit from fuel.

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