FedEx Stock Is Falling Wednesday: What's Going On?

FedEx Corp FDX shares are trading lower Wednesday after the company reported worse-than-expected financial results. Multiple analysts also lowered price targets following the print.

• Q2 Revenue: $22.2 billion missed estimates of $22.39 billion
• Q2 EPS: $3.99 missed estimates of $4.19

Despite a decline in revenue, both income and margin improved. Consolidated operating income was up 9% and up 17% on an adjusted basis, primarily driven by execution of the company's DRIVE program.

"FedEx has delivered an unprecedented two consecutive quarters of operating income growth and margin expansion even with lower revenue, clear evidence of the progress we are making on our transformation as we navigate an uncertain demand environment," said Raj Subramaniam, president and CEO of FedEx.

"We are moving with speed to make our network more efficient while delivering outstanding service to our customers through the peak season with the fastest Ground network in the industry."

FedEx anticipates a low-single-digit percentage decline in full-year 2024 revenue on a year-over-year basis. The company expects full-year 2024 earnings to be in the range of $17 to $18.50 per share versus estimates of $18.25 per share. 

Following the company's quarterly results, JPMorgan analyst Brian Ossenbeck maintained FedEx with a Neutral rating and lowered the price target from $322 to $305. Barclays analyst Brandon Oglenski maintained an Overweight rating and lowered the price target from $330 to $310.

See Also: FedEx, General Mills And 3 Stocks To Watch Heading Into Wednesday

FDX Price Action: FedEx shares were down 10.6% at $250.30 Wednesday morning, according to Benzinga Pro.

Photo: John R Perry from Pixabay.