SA: FedEx falls after revenue miss, weak profit guidance; UPS slips as well

SEEKING ALPHA reports:

FedEx Corporation (NYSE:FDX) traded lower after reporting lower global volume in FQ4 and setting full-year profit guidance below expectations.

The Memphis-based shipping giant reported total revenue of $21.9B for the quarter vs. $22.66B consensus. Express segment revenue was $10.41B vs. $10.76B consensus. The Express segment saw operating results decline due to lower global volumes, partially offset by decreased expenses and higher U.S. domestic yields. The Ground segment saw results improve results primarily due to higher revenue per package and cost-reduction actions, which were only partially offset by lower package volume, higher infrastructure costs and increased other operating expenses. Freight segment operating results declined primarily due to decreased shipments and lower weight per shipment, partially offset by improved revenue quality. The company noted that FedEx Freight remains focused on cost discipline, supported by a fourth round of furloughs to match staffing with demand and network optimization from the planned permanent closure of 29 facilities…

The full post is here.