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Today at a glance:
🚚 FedEx: Delivering Below Expectations
🍪 General Mills: Declining Organic Sales
🧑🍳 Darden: Uber Partnership
1. 🚚 FedEx: Delivering Below Expectations
FedEx updated its financial presentation, consolidating Ground and Services into the Express segment. Q1 FY25 (ending in August) missed expectations with adjusted EPS of $3.60 (vs. $1.17 miss) and revenue mostly flat at $21.6 billion ($310 million miss), leading to a stock price drop of over 10%. The company attributed the weaker performance to a weaker demand for the more lucrative priority deliveries, increased operating expenses, and one fewer operating day.
Consequently, FedEx lowered its full-year outlook, revising revenue growth expectations to a low single-digit percentage and adjusted EPS to between $17.90 and $18.90 (down from $18.25 to $20.25 per share previously). Management focuses on cost reduction and network optimization to navigate the challenging environment and the weaker demand from industrial customers.