FedEx Shares Are Down Today: What's Going On?

FedEx Inc. FDX shares are trading lower Friday after the company’s third-quarter adjusted EPS results missed analysts' expectations on Thursday.

What To Know: FedEx reported quarterly earnings of $4.51 per share, falling short of the consensus estimate of $4.54. However, revenue for the quarter came in at $22.2 billion, surpassing expectations of $21.89 billion and marking an increase from the $21.7 billion reported in the same quarter last year.

CEO Raj Subramaniam acknowledged the challenging operating environment, citing a compressed peak season and severe weather disruptions. Despite these headwinds, he highlighted the company's efforts in improving profitability and transforming operations. Looking ahead, FedEx remains focused on navigating shifting macroeconomic conditions and supporting customers.

The company revised its fiscal 2025 revenue outlook, now expecting revenue to be flat to slightly down year-over-year. This is a downgrade from its prior forecast of approximately flat revenue. FedEx also stated that it is unable to provide an earnings per share or tax rate outlook for fiscal 2025 due to uncertainties related to mark-to-market retirement plan accounting adjustments.

Following the earnings report, several analysts lowered their price targets for FedEx:

Stifel: Maintains Buy, lowers price target from $364 to $354
Raymond James: Maintains Outperform, lowers price target from $320 to $290
Loop Capital: Downgrades from Hold to Sell, lowers price target from $283 to $221
BMO Capital: Maintains Market Perform, lowers price target from $330 to $275
Stephens & Co.: Maintains Overweight, lowers price target from $320 to $300
Wells Fargo: Maintains Equal-Weight, lowers price target from $275 to $260
UBS: Maintains Buy, lowers price target from $350 to $331

FDX Price Action: FedEx shares were down 7.94% at $226.50 at the time of writing, according to Benzinga pro.