FedEx Corporation (NYSE:FDX) shares dropped more than 21% following the Q1 pre-announcement and full 2023-year guidance withdrawal.
Q1 adjusted EPS is expected to be $3.44 (down 21% year-over-year), which was below the Street estimates of $5.14. Pre-announced Q1 revenue was $23.2 billion (up 5% year-over-year), which underperformed the Street estimates of $23.6 billion. The primary driver of the revenue shortfall was a $500 million underperformance vs. internal expectations in the Express segment.
The company expects Q2 guidance for revenue and adjusted EPS of $23.5-$24.0 billion and $2.75-plus (down 43% year-over-year). These are both below Street estimates of $24.9 billion for revenue and $5.48 for adjusted EPS.