$FedEx (FDX.US)$FedEx still has a significant impact in the US, given its close ties to the vitality of the American real economy. The market often views its performance as a barometer of US economic vitality. This profit warning might just confirm the US economic downturn. However, inflation remains at a high plateau, while employment has shown clear improvement... It seems like various indicators are in a tug-of-war. Nasdaq has learned the essence from 'A': when in doubt, a sell-off will do.
If we look closely at FedEx's profit warning, preliminary estimates show that the adjusted operating profit for the first quarter of the fiscal year 2023 ended August 31 this year was $1.23 billion, far below analysts' expectations of $1.74 billion. Preliminary calculations indicate that the earnings per share (EPS) under non-GAAP for the first quarter are expected to be $3.44, down from $4.37 in the same period last year and significantly lower than the market consensus of $5.14.The company stated that its poor performance was mainly due to the adverse impact of an accelerated global sales slowdown during the final weeks of the reporting period.FedEx’s performance was particularly affected by weak macroeconomic conditions in Asia and Europe, causing the division's revenue to fall about $500 million short of the company's forecast. FedEx Ground's revenue also came in approximately $300 million below the company's expectations.