FedEx said fiscal first quarter earnings grew 22% year-over-year to $1.46 per share, which compares to analysts’ estimate of $1.45 per share.
“The U.S. and global economy grew at a slower rate than we anticipated during the quarter,” said CFO Alan Graf.
According to FedEx’s earnings release, “[I]mproved FedEx Ground and FedEx Freight results offset the effect of slowing global economic growth.”
FedEx is a classic bellwether of the economy.
For the full fiscal year, management cut guidance to $6.25 to $6.75 per share, from previous guidance of $6.35 to $6.85 per share. According to FedEx, this “assumes the current market outlook for fuel prices and moderate growth in the global economy.” The midpoint of $6.50 per share is higher than analysts’ expectation of $6.40 per share.*
Shares are down 1% in premarket trading.
*UPDATE: Earlier, we said the midpoint was in line with guidance.
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