Proactive Investors - FedEx (NYSE:FDX) tumbled in overnight US trading as it warned full earnings would miss its guidance after a difficult first quarter.
One analyst said the magnitude of the miss was huge while Barclays (LON:BARC) added it was one of the “worst first quarter profitability outcomes outside of the 2009 recession."
The parcels group now expects annual earnings to be between $20.00 to $21.00, against $20.00 to $22.00 previously, with revenue growth at a low single-digit percentage.
Recent demand had been weak said FedEx, though it was putting up prices to try to offset this.
"We are cautiously optimistic about a moderate improvement in the industrial economy in the second half," Rajesh Subramaniam, chief executive, said to reporters.
In the quarter ending 31 August, adjusted earnings came in at US$3.60 on revenue of $21.6 billion against market forecasts of US$4.86 on revenue of US$22 billion.
Management reiterated it expects to return US$3.8 billion to shareholders this year.
Shares crashed 13% overnight to US$300.40.