FedEx Falls to Support After Unexpected
FedEx Corporation (FDX) shares fell more than 4% during Wednesday’s session after weak third-quarter earnings and lower guidance. Revenue rose 3% to.17 billion, missing consensus estimates by $ 700 million, and non-GAAP earnings came to $ 3.03 per share, missing consensus estimates by seven cents per share.
The company also lowered its guidance throughout the year, citing slowing macroeconomic conditions and weaker global trade growth trends. Management expects full-year earnings per share of $ 15.10 to $ 15.90, which is lower than its previous guidance and Consensus Estimate of.15.91. The anticipated slowdown is also having a broad effect on the stock market.
Analysts had a mixed reaction to the financial results. Allison Landry of Credit Suisse raised her price target on FedEx shares from FedEx 236.00 to.241.00, saying the bad news is out of the way and downside risk remains limited. On the other hand, KeyBanc’s Todd Fowler lowered his price target from.240.00 to. 215.00, saying FedEx’s financial results reflected slower growth and an unfavorable mix with respect to its Express
operations.From a technical point of view, the stock broke from the resistance of the trend line to the support of the trend line near $ 173.00. The Relative Strength Index (RSI) fell to neutral levels of 40.51, while the Moving Average Convergence Divergence (MACD) remains neutral. These technical indicators provide some advice on the future direction of the price, but leave room for more inconvenience ahead.
Traders should be on the lookout for a rebound from the trendline support to the upper trendline resistance at $ 180.00 in the coming sessions. If the stock breaks down from support, traders could see a move towards S2 support at o 166.70 or earlier lows near cerca 150.00, although that scenario seems less likely to occur.