FedEX shares were under pressure last week after the company announced poor preliminary results.
The EPS was USD 3.44 vs expected 5.10. The company also withdrew FY23 earnings guidance. With the announcement the shares were down -11% after-market and over -20% with the market open.
The CEO said global volumes declined as macroeconomic trends slightly worsened later in the quarter, both internationally and in the US.
To try and address this the company announced a string of measures including deferring staff hiring, reduce flight frequency, consolidate sort operations, and reduce Sunday operations.
Will these enacted measures support FedEx shares higher from here? The seasonal outlook is strong for FedEx stock from now until early December with an annualized return of over 60%.
Time to buy FedEx on Express recovery hopes?
Major Trade Risks:
The major trade risk is that the global macroeconomic outlook continues to worsen and weighs on FedEx stock.
Remember, don’t just trade it. Seasonax it!