United Parcel Service Inc (NYSE:UPS) shares are trading lower Wednesday in sympathy with FedEx Corp (NYSE:FDX), which reported weak quarterly results.
What To Know: FedEx missed analyst estimates for the second quarter on both the top and bottom line. Revenue of $22.2 billion missed the consensus estimate of $22.39 billion, according to Benzinga Pro. Earnings of $3.99 per share missed estimates of $4.19 per share.
FedEx also said it anticipates a low-single-digit percentage decline in full-year 2024 revenue on a year-over-year basis. The company expects full-year 2024 earnings to be in the range of $17 to $18.50 per share versus estimates of $18.25 per share.
FedEx and UPS are the two biggest shipping carrier companies in the world. Beyond the weak financial results, commentary about the current demand environment appears to be weighing on the pair Wednesday.
“FedEx has delivered an unprecedented two consecutive quarters of operating income growth and margin expansion even with lower revenue, clear evidence of the progress we are making on our transformation as we navigate an uncertain demand environment,” said Raj Subramaniam, president and CEO of FedEx.
Multiple analysts also lowered price targets on FedEx following its quarterly results, which appears to be adding to the selling pressure in the shipping carrier names.
UPS Price Action: UPS shares were down 1.72% at $158.87 at the time of publication, according to Benzinga Pro.
Photo: Takahiro Nagao from Flickr.
