FedEx to ‘Significantly’ Miss Earnings Estimates

FedEx Corp. said for the second time in a month that earnings will be less than expected because companies are shipping fewer expensive overnight packages as the U.S. economy slows. The largest one-day delivery company expects to earn 50 cents to 60 cents a share in the fiscal fourth quarter ending May 31, less than the average estimate of 69 cents. FedEx said its first-quarter profit will be “significantly” below the forecast of 57 cents. FedEx said on April 4 that it wouldn’t earn the 85 cents to 90 cents it had initially expected for the fiscal fourth quarter because of the lower U.S. overnight shipments at FedEx Express. Those shipments had declined 4.4% in March from a year earlier, and went on to fall 9% last month. Shares of Memphis, Tenn.-based FedEx fell $1 to close at $40.28 on the NYSE.