Another quarter and another lowering of full-year 2020 earnings guidance from FedEx (NYSE: FDX). It's becoming a familiar, and disappointing, refrain from the company. That said, it usually pays off to keep a clear head when making investment decisions, and it's fair to say that FedEx has been hit with a mix of unusual external headwinds this year. Moreover, the stock price decline -- down 6% in the last year and underperforming UPS (NYSE: UPS) by over 35% points -- will inevitably attract investors to an iconic American company. Let's take a closer look at what's going on and what you need to know about investing in FedEx.
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I'll start with the bad news. Having started its fiscal 2020 with guidance that implied $14.60 to $14.90 in diluted EPS (before retirement plan adjustments and TNT Express integration expenses), management lowered it to $11-$13 on the first-quarter earnings call in September. Fast-forward to the second-quarter earnings in December, and the guidance was lowered again to $10.25-$11.50.
Source Fool.com