FedEx Corp.'s stock dropped 3.1% in premarket trade Wednesday, after the package delivery giant reported fiscal first-quarter earnings that missed expectations and lowered its full-year outlook. Earnings rose to $692 million, or $2.42 a share, from $653 million, or $2.26 a share, in the same period a year ago, but fell short of the FactSet consensus of $2.45 a share. Revenue increased to $12.3 billion from $11.7 billion, in line with the FactSet consensus, as better-than-expected revenue from its FedEx Ground segment offset misses in the Express and Freight businesses. The company lowered its full-year EPS outlook to a range of $10.40 to $10.90 from $10.60 to $11.10, due primarily to weaker trucking industry demand and higher-than-expected self-insurance reserves and operating costs at it FedEx Ground business. "FedEx Corp. is performing solidly given weaker-than-expected economic conditions, especially in manufacturing and global trade," said Chief Executive Frederick Smith. The stock has tumbled 15% over the past three months through Tuesday, while the S&P 500 has lost 5.6%. On Tuesday, FedEx announced shipping rate increases for its express, ground and freight businesses.
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