Earnings Hit by Cyber-attack and Hurricane Harvey, FedEx Shares Slip
Sep, 20th 06:28
Shares of FedEx Corp. reversed lower on Tuesday after having closed the regular trading session 0.5% higher. Shares were hit after the courier delivery services company reported fiscal first-quarter earnings below expectations.
FedEx’s shares lost nearly 1.4 percent in after-hours trading on Tuesday after the Memphis, Tennessee-based company cited a cyber-attack and Hurricane Harvey as causes for its plunge in earnings. FedEx reported earnings of $596 million, or $2.19 a share for the last quarter, down from $715 million, or $2.65 a share, in the year-ago period.
Adjusted for one-time items, FedEx posted EPS of $2.51, also down from $2.82 a share recorded a year ago. Meanwhile, revenue was reported to advance to $15.3 from 14.7 billion a year ago.
The logistics company said that its revenue was affected by the TNT Express cyber-attack, which offset results from higher base rates, while it had to bear more expenses from higher costs at FedEx Ground, higher tax rates, and the impact from Hurricane Harvey.
FedEx downgraded its 2018 adjusted fiscal-year earnings forecast from a previous range of $12.45 to $13.25 to a range of $11.05 to $11.85. This range is well below analysts’ forecast for earnings of $13.01 per share for the full year.
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