FDX is down $11.01 (5.95%) at $174 in after-hours trade but coming back from the AH low of $173.30.
S&P and DJIA futures are both in the red.
From ZeroHedge:
Stocks Slammed After-Hours As FedEx Slashes Profit Outlook. Micron Misses
The algo-enthused ramp into the cash close has been entirely erased after hours as futures tumbled, led by belwether FedEx which cut its profit forecast and announced an international capacity reduction as the courier grapples with a slowdown in global trade.Not good for the economy when the big transport companies see weakness.
“While the U.S. economy remains solid, our international business weakened during the quarter, especially in Europe. We are taking action to mitigate the impact of this trend through new cost-reduction initiatives.”As Bloomberg reports, FedEx slashed its target for adjusted earnings in fiscal 2019 to $15.50 to $16.60 a share from a previous goal of $17.20 to $17.80.
The company also said in a statement that it won’t meet a target for operating-profit growth at the Express unit of $1.2 billion and $1.5 billion in fiscal year 2020.
FedEx is also getting hurt in Europe, where “economic weakness that accelerated during the quarter” will delay the benefit of the company’s acquisition of TNT Express....MORE
