By coinnews 
00:00 Speaker A
FedEx’s fiscal third-quarter earnings just crossing the stock down a quick 4% on the company’s reduction to its outlook for the full fiscal year. But the third quarter numbers actually coming in okay on the revenue front. 22.2 billion dollars, a little bit ahead of analyst estimates. Earnings per share in the third quarter, $4.51, that’s six cents shy of estimates. But the forecast for the full year, for its full fiscal year, earnings per share, $18 to $18.
00:40 Speaker A
60. The company had seen 19 to $20 here. And an interesting note here in the statement where the company says it’s unable at this time to forecast its mark-to-market retirement plans accounting adjustments for the full year. And so this forecast it’s giving doesn’t seem to fully account for that. Although it does account for other costs related to business optimization and regulatory and legacy, it says, ground legal matters. Remember, it’s separating the ground business. It’s in the process of doing that.
01:20 Speaker B
I was going through some analyst commentary coming into the print truly, and it seemed like analysts largely expected this to not be that good of a print. Analysts at City were saying that they expected FedEx to lower their full-year EPS guidance. So I think that’s part of what you’re seeing from a stock reaction standpoint right now. Yes, shares are off 4%, but they’re cutting their full-year earnings guidance, and you’re not seeing that large of a move in. The other thing, too, that we were just talking about sort of while we were in break, sometimes there’s maybe something within the things that you don’t see in a release that are interesting because I would consider the general slowing consumer demand story and the slowing economy story to be part of the FedEx story. That is not attributed really, in large part, to what’s going on here, nor is tariffs, right, which would also be a potential headwind. So we haven’t even gotten into that part of the conversation, which is, of course, going to happen on that earnings call. But it’s interesting a lot of times when there are kind of obvious macro headwinds, you will see a company point that out when then they do.
02:58 Speaker A
Well, they do make some illusion to macro headwinds, but they don’t say the word consumer. John Dietrich, who is the CFO, in the statement saying, our revised earnings outlook reflects continued weakness and uncertainty in the US industrial economy, which is constraining demand for our business-to-business services. So they talk about that side of things, B2B, but not consumer side of the business. As you say, they’re definitely going to get asked about it.
03:41 Speaker B
Yes, there will be, that will be probably one of the bigger takeaways from the call, yes.