22.03.2025
Oleg Tkachenko
Author and expert at Traders Union
22.03.2025

FedEx shares plunge 9.4% after slashing revenue and profit outlook

FedEx shares plunge 9.4% after slashing revenue and profit outlook FedEx stock tumbles after company slashes revenue expectations

​FedEx shares plunged 9.41% in premarket trading on Friday, falling to $223.82 per share. The transportation and logistics giant has now lost 12.48% of its value since the beginning of the year.

The sharp decline followed the company’s announcement that it had lowered its revenue and profit forecasts for fiscal 2025, citing weaker-than-expected shipping demand and persistent economic uncertainty, reports Business Insider.

The news also weighed on the broader shipping sector, with shares of United Parcel Service (UPS) slipping 1.92% in premarket trading on Thursday. Investors remain wary of slowing business activity and weaker consumer spending, which have begun to take a toll on the transportation and logistics industry.

FedEx Revises 2025 Financial Outlook

During its earnings call, FedEx executives pointed to inflationary pressures and a sluggish U.S. industrial economy as major challenges. "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," said John Dietrich, FedEx's executive vice president and chief financial officer.

The company now expects fiscal 2025 revenue to be slightly lower than last year, reflecting the impact of slowing demand. Adjusted earnings per share (EPS) are now projected to range between $18 and $18.60, down from the previous estimate of $19 to $20. 

Additionally, FedEx lowered its capital expenditure outlook to $4.9 billion, signaling a more cautious approach to spending amid macroeconomic headwinds.

Broader Economic Concerns

FedEx’s revised forecast highlights growing concerns over the health of the U.S. economy. Recent economic data points to softer consumer spending, as indicated by this week’s weaker-than-expected retail sales report. Consumers appear to be cutting back on purchases amid trade war uncertainties and fears of an economic downturn.

The Federal Reserve also acknowledged these concerns this week, choosing to keep interest rates steady on Wednesday as policymakers monitor inflation and economic conditions. With FedEx seen as a bellwether for global trade, its profit warning may signal further economic turbulence ahead.

​​​Earlier, shares of Nintendo Co., the maker of the Mario Kart franchise, fell nearly 9.8% in Tokyo, marking their steepest intraday drop since August 2024.

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