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‍Stock Impact:
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FedEx Corporation {{ m-tag option="price" ticker="FDX" currency="USD" }} experienced a significant setback as its shares tumbled over 9% in after-hours trading following a disappointing fiscal second-quarter performance and a lowered revenue forecast. The company's results fell short of Wall Street's expectations, with adjusted earnings per share at $3.99, below the anticipated $4.18. Revenue declined, reaching $22.17 billion against the expected $22.41 billion.

Revenue Forecast: 
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The company's Express unit, its largest division, faced particular challenges due to decreased demand, surcharges, and customer shift to more economical services. This decline in demand has led FedEx to revise its full-year revenue outlook, now anticipating a low-single-digit decline, a stark contrast to its previous forecast of flat sales year-over-year.

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Despite these challenges, FedEx reported a net income of $900 million, or $3.55 per share, for the three months ending November 30, up from $788 million, or $3.07 per share, a year earlier. This increase is attributed to the company's aggressive cost-cutting initiatives, which have been crucial in navigating the uncertain demand environment.

Fiscal 2024 Projections:
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FedEx CEO Raj Subramaniam emphasized the company's resilience, stating, "FedEx has delivered an unprecedented two consecutive quarters of operating income growth and margin expansion even with lower revenue." For fiscal 2024, FedEx now projects earnings per share to be between $17.00 and $18.50, compared to the consensus estimate of $18.25.

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The company's revised outlook reflects the ongoing global logistics and transportation challenges, influenced by volatile macroeconomic conditions. Investors and market analysts closely monitor FedEx's performance as an indicator of broader economic trends.

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