By Investing.com Staff
FedEx Corporation (NYSE 🙂 officially reported its first-quarter earnings on Thursday, which were basically in line with preliminary numbers released last week that sent Wall Street stocks tumbling. To make matters worse, the packaging giant released the numbers about an hour and a half early today due to what it called a “technical issue.”
Revenues amounted to $23.2 billion, compared to $22 billion last year. Earnings per share without GAAP were $3.33, down from $4.09 last year.
The quarter results were negatively impacted by weak global volume which accelerated in the final weeks of the quarter due to weak economic conditions. Furthermore, results have been hurt by service challenges at FedEx Express
The company said it was accelerating its $4 billion cost-saving plan.
“We are moving with speed and agility to navigate a challenging operating environment, and we are pulling cost, commercial and capacity levers to adapt to the effects of lower demand,” said Raj Subramaniam, FedEx President and CEO. “As our team continues to work aggressively to address near-term headwinds, we are purposefully enhancing our business and customer experience, including delivering exceptional peak performance.”
For the second quarter, the company expects revenue of $23.5-$24.0 billion and EPS revenue of $2.65 or more.
As previously noted, the entire year’s guidance has been withdrawn.