FedEx warns on profit, slashes outlook as demand slumps

FedEx Corp. warned Thursday it will likely miss Wall Street's first-quarter profit target and said it expects business conditions to further weaken in its fiscal second quarter amid weaker global volume.

The Memphis, Tennessee-based package delivery company also scrapped its forecast for fiscal 2023 earnings, which it issued less than three months ago.

For the three months ended August 31, FedEx projected adjusted earnings per share of $3.44 and $23.2 billion in revenue. That's below analysts' consensus forecast of $5.14 adjusted earnings per share and $23.6 billion in revenue, according to FactSet.

“Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S.,” FedEx CEO Raj Subramaniam said in a statement. “We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first-quarter results are below our expectations.”