Analysts at Oppenheimer reduced their estimates on FedEx Corporation (NYSE:FDX) given the adverse outlook.
On September 15, the company pre-announced Q1/23 adjusted EPS of $3.44 (down 21% year-over-year), compared to the Street estimate of $5.14. Quarterly revenue grew 5% year-over-year. However, Q1 adjusted operating income/margin was down 18%/150bps.
On September 22 Q1 conference call, the company reaffirmed underperformance stemmed from “global volume softness that accelerated in the final weeks of the quarter” and service challenges in the Express segment. 
Maintaining yield management focus, the company implemented Q1 cost actions, although corresponding OPEX reduction lagged the volume declines.
Considering current business trends, the analysts lowered their 2023-2025 estimates, now expecting adjusted EPS of $14.78 (down 28% year-over-year), $17.30 (up 17% year-over-year), and $19.34 (up 12% year-over-year) for 2023, 2024 and 2025, respectively.
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