reports its first quarter financial results after close of trading on Thursday, but investors already know the numbers were dire. Now they want answers.
On September 15
(ticker: FDX) has released the numbers in advance, saying it earned $3.44 a share from $23.2 billion in sales in the first quarter of fiscal 2023, the three months ended August. Wall Street was looking for $5.10 in earnings per share from $23.5 billion in sales.
earned $6.87 per share in the fiscal fourth quarter and $4.37 per share in the first quarter of fiscal 2022.
Shares tumbled 21.4% in response. It was the worst day for the stock, according to Dow Jones Market Data, scanning all available data up to 1978.
The early announcement means there’s little risk involved in the upcoming quarterly report, but that’s not very reassuring for investors. After the plunge, stocks are down about 41% so far this year, while the
Dow Jones Industrial Average
are 20% and 17% discount respectively.
Rather than looking at a gain or a miss, investors will want to hear more from management about the global slowdown the company cited in announcing its disappointing results. They will also ask how quickly FedEx can cut costs to maintain profit margins and when things can change.
Management has scheduled a conference call at 5:30 p.m. Eastern time to discuss the results.
Options markets still imply that the stock will move up or down 5% after earnings. Think of it as aftershocks of the original earthquake.
Write to Al Root at [email protected]