|
The
U.S. firm joined major global logistics peers including Hong
Kong's Cathay Pacific Airways and France-based transporter CMA
CGM in signaling that consumers are saving for essentials such
as gas and food ahead of the holiday season as surging prices
discourage casual shopping.
FedEx, considered the bellwether of the global economy and the
broader logistics sector, tumbled 19% to $165.67 after it pulled
a financial forecast it had issued just three months ago.
If losses hold through the session, it would mark the steepest
one-day percentage drop for FedEx, surpassing its 16.4% slump on
Black Monday in 1987.
Rival United Parcel Service shed 6.8%, XPO Logistics dropped
11.2% and e-commerce giant Amazon.com slipped 2.8%, while U.S.
stock futures were knocked down overnight after FedEx's results.
[.N]
Across the Atlantic, Germany's Deutsche Post shed 6.3%, London's
Royal Mail fell 11.5% and Copenhagen-based DSV dropped 5.7%
after the news.
FedEx's weak result highlights the difficult macroeconomic
backdrop as elevated inflation and concerns about slowing global
growth dent shipping volumes, said Victoria Scholar, head of
investment at Interactive Investor.
However, some analysts believe FedEx's dour performance in the
first quarter is mostly a company-specific issue.
"Clearly, there are questions about the direction of the global
economy, especially in Europe and Asia, but we struggle to see
how that accounts for the entirety of this quarter's miss,"
Stifel analysts said in a note.
(Reporting by Medha Singh, Bansari Mayur Kamdar and Kannaki Deka
in Bengaluru; Editing by Devika Syamnath)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
