FedEx's Gloomy Outlook Underscores Pain For Parcel Shippers - Smart Money
The Memphis, Tenn., company said late Monday that earnings for its fiscal second-quarter ended Nov. 30 will come in toward the high end of its prior guidance. However, it followed the announcement with a stark warning that the full fiscal year will be disappointing, with the low end of the projected earnings range 26% below previous guidance.
Both FedEx and UPS, widely seen as bellwethers for the general economy, have warned previously that the slowing economy was hurting the parcel and freight delivery sector. Still, analysts called FedEx's downbeat comments regarding its full fiscal year fresh evidence of the magnitude of the ongoing deterioration.
The Memphis, Tenn., company said late Monday that earnings for its fiscal second-quarter ended Nov. 30 will come in toward the high end of its prior guidance. However, it followed the announcement with a stark warning that the full fiscal year will be disappointing, with the low end of the projected earnings range 26% below previous guidance.
Both FedEx and UPS, widely seen as bellwethers for the general economy, have warned previously that the slowing economy was hurting the parcel and freight delivery sector. Still, analysts called FedEx's downbeat comments regarding its full fiscal year fresh evidence of the magnitude of the ongoing deterioration.
