NEW YORK (AP) — FedEx shares tumbled after the delivery giant blamed slowing economic growth and trade tension for a disappointing quarter and cut its forecast of full-year earnings.
Shares were down $23.67, or 13.7%, to $149.63 in afternoon trading Wednesday. That’s the stock’s worst one-day percentage drop since the depths of the recession in 2008.
FedEx is hurt by a slowdown in international air shipping and higher costs in its ground-delivery business.
The company said late Tuesday that profit fell 11% to $745 million in its fiscal first quarter, missing Wall Street expectations. It predicted full-year adjusted earnings of $11 to $13 per share, well below analysts’ $14.68 prediction.
UBS analyst Thomas Wadewitz says pressure on FedEx profit margins is likely to increase and there’s no relief in sight for high capital spending.