FedEx Violently Plunges 6% as CEO Admits Catastrophic U.S Industrial Meltdown…

FedEx is in cost-cutting survival mode, but based on its latest earnings report, the package delivery behemoth is still getting its a$$ kicked by the economy. The company just slashed its full-year profit and revenue forecasts—again—sending shares down more than 6% yesterday. 

(Source: Giphy) 

The main culprit of the shat show? A weak U.S. industrial economy, tariffs, and even bad weather. Yes, FedEx is now blaming Mother Nature for missing earnings. In short, FedEx reported Q3 earnings of $4.51 per share, up from $3.86 last year but still missing Wall Street’s already-low expectations of $4.54 per share. Revenue came in at $22.2 billion—technically a beat, but barely.

The real gut punch came from its fiscal 2025 outlook, which the company cut for the second time in four months. FedEx now expects to bring in $18.00 to $18.60 per share, down from its previous forecast of $19.00 to $20.00. Just a few months ago, they were projecting $20 to $22. That’s a lot of backpedaling. So with that, what’s the excuse this time? 

(Source: Reuters) 

Well according to CFO, John Dietrich, he pointed to “continued weakness and uncertainty in the U.S. industrial economy”, which basically translates to, “businesses aren't shipping as much stuff, and we have no idea when it’ll get better.” Now this is somewhat bigly bad due to the fact that FedEx is deeply tied to the health of the economy, and right now, the economy looks about as sturdy as a house of cards in a wind tunnel.

See, with Trump slapping new tariffs on trading partners, global trade flows could take a hit, which means fewer packages and less revenue for FedEx and rival UPS. Add in corporate cost-cutting, slowing industrial production, and recession fears, and you get an environment where businesses are shipping less, and consumers aren’t exactly impulse-buying their way out of this mess.

(Source: Giphy) 

And if all that wasn’t bad enough, FedEx also complained about a “compressed peak season” and severe winter weather hurting its delivery volumes. Naturally, investors are losing their patience with this. Especially since FedEx has been slashing costs like it’s a Mayoshi Son-backed startup—merging its Ground and Express units, axing jobs, and even planning to spin off its profitable Freight division to unlock shareholder value. But, but, but… none of that seems to be enough. 

For instance, the stock is already down 16% this year, and analysts aren’t feeling great about where it’s headed. Morgan Stanley is still bearish on FedEx, keeping an Underweight rating with a $200 price target. Citi, meanwhile, cut its price target from $347 to $317, citing worries about tariffs and industrial weakness. 

(Source: Investing.com) 

Additionally, FedEx lost its massive USPS contract to UPS, which means they’re now fighting even harder for the same customers. A price war with UPS could squeeze margins even further, making this already ugly situation even worse. Now to be fair though, FedEx is still a giant in the logistics game, but right now, it’s looking less like a growth stock and more like a struggling legacy business trying to stay afloat.

So yeah, between a slowing economy, tariff risks, and corporate belt-tightening, demand for shipping is weak, and there’s no clear sign of when it’ll turn around. Meaning, if you’re an investor, the question is simple: Do you believe FedEx can cut its way to profitability, or is this just the beginning of a long, painful decline? Because as of right now, the only thing crystal clear is the stock chart looking like a staircase… a staircase that’s going down. 

(Source: Giphy) 

In the meantime, keep your eyes on FedEx, especially considering it’s a major economic indicator as mentioned in yesterday's Final Tally article—and remember, stay safe and stay frosty, friends! Until next time…

P.S. Just when you thought our beloved congressmen couldn’t get any greasier, one Republican lawmaker decided to YOLO $175k into a stock—right before a major FDIC announcement hit. Lucky timing? Insider edge? You be the judge. We broke it all down inside this week's Stocks.News premium article—click here to check it out ASAP! 

Stocks.News does not hold positions in companies mentioned in the article.