FedEx's Next Year Outlook May Be Weighed Down by Trade War
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FedEx Corp’s pains are far from over. Expectations from its upcoming fiscal fourth-quarter results have already hit rock bottom, and now analysts say its entanglement in the prolonged U.S.-China trade war may dampen the outlook for the next year as well.
“Given several macro overhangs (trade war, U.S. industrial economy, Eurozone softness, etc.), we wouldn’t be surprised to see a fairly wide EPS guidance range,” Raymond James analyst Patrick Tyler Brown wrote in a note to clients. The analyst said the recently announced dividend for FedEx’s fiscal first quarter was the first time since June 2009 that the payout did not increase, and wondered if it provided a “telling sign” for sluggish guidance.