FedEx Shares Fall On Earnings Miss, Lower Guidance

FedEx Corporation (NYSE: FDX) shares are getting crushed after reporting a third-quarter earnings miss.

The shipping giant reported third-quarter earnings of $3.03, missing estimates by 14 cents. Sales came in at $17 billion, missing estimates by $690 million.

The company reported 2019 adjusted earnings guidance of $15.10-$15.90, below consensus estimates of $15.97 and sees capital spending of $5.6 billion.

"Our third quarter financial results were below our expectations and we are focused on initiatives to improve our performance," said Chairman and CEO Fred Smith. "Our investments in innovation, network infrastructure and automation will increase our competitiveness and drive long-term earnings growth. FedEx built and operates the preeminent global parcel and logistics network, and we have a lengthy track record of success."

"Slowing international macroeconomic conditions and weaker global trade growth trends continue, as seen in the year-over-year decline in our FedEx Express international revenue," said CFO Alan Graf, Jr.. "We have launched our voluntary employee buyout program, constrained our hiring, are limiting discretionary spending and are reviewing additional actions to mitigate the lower-than-expected revenue trends."

FedEx shares are down 4.8 percent at $172.75 in after-hours trading.

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