FedEx Stock Takes A Hit After The Company Posts Weak Q2 Financial Results

FedEx Corporation FDX shares are trading lower in Tuesday's after-hours session after the company reported worse-than-expected second-quarter financial results. Here are the metrics which are moving the stock.

What To Know: FedEx reported quarterly earnings of $3.99 per share, falling short of the Street's estimate of $4.19, a 25.47% increase over earnings of $3.18 per share from the same period last year.

The company reported quarterly sales of $22.20 billion which missed analyst expectations of $22.39 billion. The figure marks a 2.69% decrease over sales of $22.81 billion the same period last year.

Despite the revenue decline, income and margin improved. Consolidated operating income grew 9% and adjusted operating income rose 17%, with the company citing the execution of its DRIVE program, and an ongoing focus on service and revenue quality, as factors for the achievement.

FedEx reiterated its full-year adjusted earnings forecast. Full-year earnings are anticipated to be between $17.00 and $18.50 per share, versus the $18.25 estimate. Capital Spending is estimated to be $5.7 billion.

"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, FedEx Corp. president and CEO.

"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. I am confident in our strategy as we make our global network more flexible, efficient, and intelligent."

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FDX Price Action: Shares of FDX were down 7.64% at $258.73 in the after-hours session at the time of publication, according to Benzinga Pro.

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