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FedEx profit falls, CEO calls the results disappointing

FILE- In this Dec. 15, 2014, file photo a worker checks packages on a conveyer belt before being loaded onto trucks for delivery at a FedEx Express facility in Marietta, Ga. FedEx reports financial results on Tuesday, March 19, 2019. (AP Photo/David Goldman, File)

MEMPHIS, Tenn. — Shares of FedEx fell in after-hours trading after the package-delivery giant reported lower profit.

Chairman and CEO Fred Smith said Tuesday the results were below expectations but that investments in infrastructure and automation will help in the long run.

Memphis, Tennessee-based FedEx said it earned $739 million in its fiscal third quarter, down from $2.07 billion a year earlier, when profit was helped by a one-time gain in deferred tax liability from tax cuts.

Its adjusted profit was $3.03 per share. FactSet says Wall Street was expecting $3.08 a share.

Revenue rose 3 per cent to $17.01 billion.

FedEx cut its full-year earnings forecast to between $11.95 and $13.10 per share, down from $12.65 to $13.40.

The company’s stock dropped 5.7 per cent in after-hours trading following the earnings report.

The Associated Press