FedEx Trims 2016 Forecast as First-Quarter Earnings Fall Short
- Quarterly earnings fall short of analysts' estimates
- FedEx again lowers forecast for U.S. industrial production
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FedEx Corp. fell the most on the Standard & Poor’s 500 Index after cutting its full-year profit forecast just three months into the new fiscal year.
Softer demand for U.S. freight cargo and higher costs in the Ground unit are weighing on results, according to FedEx, whose diverse shipments make it a U.S. economic bellwether. The earnings revision surprised analysts who had predicted that it was too soon in the corporate calendar for such a move.