FedEx Corp (NYSE:FDX) shares were weak in pre-market trading after the logistics company reported below-forecast first quarter earnings reflecting “significantly operational challenges" due to a cyberattack and Hurricane Harvey.
In a statement released after-hours on Tuesday, the NYSE-listed firm said it earned US$596mln, or US$2.19 a share in the quarter, down from US$715mln, or US$2.65 a share at the same stage a year earlier.
After adjusting for one-off items, the company’s earnings per share were US$2.51, down from US$2.82 a share a year ago, and below the consensus forecast for US$3.09.
Fedex’s first quarter revenue rose to US$15.3bn, up from US$14.7bn a year earlier, but was a shade below the consensus forecast for US$15.35bn.
The group said revenue was affected by increased expenses resulting from the TNT Express cyber-attack, TNT Express integration expenses, higher costs at FedEx Ground, a higher tax rate, and the impact from Hurricane Harvey.
FedEx lowered its 2018 adjusted full-year earnings per share forecast to a range of US$11.05 to US$11.85.
The firm said the new forecasts "assume moderate economic growth and continued recovery from the cyberattack.”
In pre-market New York trading, FedEx shares were 1.4% lower at US$213.00.