FedEx (FDX) earnings Q1 2020

FedEx shares fell more than 9% after trading hours Tuesday, after missing the quarterly earnings forecast and lowering its guidance for 2020.

This is how the company performed for the first quarter of its fiscal year ending Aug. 31 versus Wall Street's expectations:

• Adjusted EPS: $ 3.05 per share versus $ 3.15 per share, according to Refinitiv
• Turnover: $ 17.05 billion against an estimate of $ 17.06 billion, according to Refinitiv

"Our performance continues to be affected by a weakened global macroeconomic environment, driven by increasing trade tensions and political uncertainty," said Frederick Smith, president and CEO, in a statement. "Despite these challenges, we are preparing FedEx to exploit future growth opportunities while continuing to integrate TNT Express, improving FedEx Ground's residential delivery capabilities, and modernizing the operations of the airline fleet and hub. FedEx Express. "

FedEx announced that it was lowering its forecast for the full fiscal year for fiscal year 2020 and now expects earnings between $ 10.00 and $ 12.00 per diluted share.

This revised outlook also reflects "FedEx Ground's increased costs and the loss of FedEx Ground's business by a large customer for the month of August," the company said in a statement.

In August, FedEx announced the end of its ground delivery contract with Amazon.

The companies said earlier in June that they were ending their contract with FedEx Express, which would only concern air services.

Amazon has become more and more a rival to FedEx, which has begun to create and develop its own distribution network. The e-commerce giant announced a late June delivery service program and has expanded its fleet to 50 aircraft, so they're no longer forced to trust FedEx and UPS.

"This change is consistent with our strategy to focus on the broader e-commerce market, which recent announcements about our FedEx Ground network are extremely good for us," said a FedEx spokesperson on Period, in response to the expiry of the term. the contract.

The mediocre results also come at a time of unresolved trade disputes and weakening of the global economy. President Donald Trump imposed 15% tariffs on Chinese imports worth about $ 112 billion on September 1, and the administration deferred the increase in tariffs. customs on goods worth $ 250 billion, from October 1 to October 15.

Faced with heightened trade tensions in recent months, FedEx has been facing uncertainties as we approach 2020, due to volatile markets and fears of a global recession.