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FedEx revenue is coming. It can’t get any worse.

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FedEx investors will want to hear from management after a disappointing update from a week ago.

Joe Raedle/Getty Images

Shipping giant


FedEx

reports its first quarter financial results after close of trading on Thursday, but investors already know the numbers were terrible. Now they want answers.

On September 15


FedEx

(ticker: FDX) pre-released the songs, proverb it earned $3.44 a share from $23.2 billion in sales in the first quarter of fiscal 2023, the three months ending August. Wall Street was looking for $5.10 in earnings per share from $23.5 billion in sales.


FedEx

earned $6.87 per share in the fiscal fourth quarter and $4.37 per share in the first quarter of the 2022 fiscal year.

Shares tumbled 21.4% in response. It was the worst day for the stock, according to Dow Jones Market Data, scanning all available data up to 1978.

The early announcement means there’s little risk associated with the upcoming quarterly report, but that’s not very reassuring for investors. After the plunge, stocks are down about 41% so far this year, while the


S&P 500

and


Dow Jones Industrial Average

are 20% and 17% discount respectively.

Rather than looking at a gain or a miss, investors will want to hear more from management about the global slowdown the company cited in announcing its disappointing results. They will also ask how quickly FedEx can cut costs to maintain profit margins and when things can change.

Manage planned a conference call at 5:30 p.m. Eastern time to discuss the results.

Options markets still imply that the stock will move up or down 5% after earnings. Think of it as aftershocks of the original earthquake.

Write to Al Root on [email protected]

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