--- title: "FedEx Shares Plunge as Economic Uncertainty Clouds Outlook" description: "FedEx's shares fell sharply on March 20, 2025, after the company lowered its annual forecast, citing economic uncertainty and a slowdown in the U.S. industrial sector. The revised outlook predicts fla" type: "news" locale: "en" url: "https://longbridge.com/en/news/232720716.md" published_at: "2025-03-21T10:00:48.000Z" --- # FedEx Shares Plunge as Economic Uncertainty Clouds Outlook > FedEx's shares fell sharply on March 20, 2025, after the company lowered its annual forecast, citing economic uncertainty and a slowdown in the U.S. industrial sector. The revised outlook predicts flat to slightly declining revenue and adjusted earnings per share of $18.00 to $18.60. Factors contributing to this decline include tariffs imposed by the Trump administration and soft demand for freight and B2B services. The ongoing economic uncertainty may continue to affect FedEx's performance and the broader logistics sector. FedEx's shares took a nosedive on Thursday, March 20, 2025, as the logistics giant slashed its annual forecast, stoking fears of a broader economic slowdown. The company's revised outlook, which now projects flat to slightly down revenue and adjusted earnings per share of $18.00 to $18.60, reflects the "continued weakness and uncertainty in the U.S. industrial economy," as cited by FedEx's Chief Financial Officer John Dietrich. This downward revision has sent shockwaves through the market, with investors scrambling to reassess their positions in light of the new information. The primary culprit behind FedEx's woes is the Trump administration's sweeping tariffs on trading partners, which have created significant uncertainty for businesses. This uncertainty has led to cautious spending by companies as they navigate an uncertain economic landscape. For instance, "U.S. President Donald Trump's import tariffs have created uncertainty for businesses, prompting them to be more cautious with their spending as they navigate an uncertain economic landscape" (Reuters, March 21, 2025). This uncertainty is likely to persist as long as the tariffs remain in place and could escalate if retaliatory measures are taken by other countries, further impacting FedEx's business-to-business (B2B) shipping services. In addition to tariffs, fedex is also grappling with an industrial slowdown, which has led to soft demand for its freight and B2B services. The company reported that its freight and business-to-business demand were soft in the third quarter, which is a clear indication of the industrial slowdown. For example, "FedEx revised its outlook downward, citing 'weakness and uncertainty' in the US industrial economy. The shipping giant said its freight and business-to-business demand were soft in the third quarter" (Business Insider, March 20, 2025). This slowdown is expected to continue, as the industrial sector, which includes firms that produce products used to make other goods, drives significant cargo volume and more profitable deliveries for FedEx. The broader economic uncertainty, exacerbated by the industrial slowdown and tariffs, is also a significant factor. FedEx's CEO, Raj Subramaniam, acknowledged this in the earnings call, stating, "I am proud of the team for executing on our transformation efforts while strengthening our value proposition and improving the customer experience. Looking ahead, we remain focused on supporting our customers amid the shifting macroeconomic environment" (Business Wire, March 20, 2025). This uncertainty is likely to persist, affecting FedEx's ability to forecast its earnings and revenue accurately. In the coming quarters, these factors could evolve in several ways: \- Tariffs: If the tariffs are lifted or reduced, it could alleviate some of the uncertainty and boost demand for B2B shipping services. Conversely, if the tariffs remain in place or escalate, the uncertainty could deepen, further impacting FedEx's performance. \- Industrial Slowdown: If the industrial slowdown persists, it could lead to a prolonged period of weak demand for FedEx's services. However, if the industrial economy rebounds, it could drive increased demand for FedEx's higher-margin B2B shipping services. \- Economic Uncertainty: If the broader economic uncertainty persists, it could continue to impact FedEx's ability to forecast its earnings and revenue accurately. However, if the economy stabilizes, it could provide a more predictable environment for FedEx to operate in. \- Structural Forces: The shift towards deferred service offerings is likely to continue, as e-commerce growth outpaces traditional B2B shipping demand. FedEx will need to adapt to this structural change to maintain its profitability. In conclusion, FedEx's downward revision of its annual forecast reflects broader economic trends of uncertainty and weakness in the U.S. industrial economy, which has implications for other sectors reliant on logistics and supply chain services. These trends suggest a potential slowdown in economic activity, which could impact demand for logistics and supply chain services. Investors should keep a close eye on these developments and adjust their portfolios accordingly. ### Related Stocks - [FDX.US - FedEx](https://longbridge.com/en/quote/FDX.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | InPost 同意被联邦快递和私募股权主导的财团以 68 亿英镑收购 | InPost 同意被联邦快递和私募股权主导的财团以 68 亿英镑收购 - 该集团计划将其在英国的自取快递柜网络从目前的 14,000 个增加到 30,000 个，超过翻倍 | [Link](https://longbridge.com/en/news/275290252.md) | | Advent 和联邦快递牵头的财团将收购包裹储物柜公司 InPost | 2 月 9 日（路透社）- 由控股公司 Advent 和联邦快递（FedEx）牵头的财团已同意以每股 15.60 欧元收购 InPost（INPST.AS），这使得这家欧洲包裹储物柜公司估值达到 78 亿欧元（92 亿美元），参与交易的公司 | [Link](https://longbridge.com/en/news/275271631.md) | | 联邦快递详细介绍其在法国的业务改革，预计将裁员 | 联邦快递计划对其法国业务进行重大改革，可能裁减多达 500 个职位，同时投资 7800 万欧元进行升级。此次重组旨在现代化其设施布局和技术，以增强在竞争激烈的市场中的竞争力。该公司将把国内站点数量从 103 个减少到 86 个，并可能调整 | [Link](https://longbridge.com/en/news/273544604.md) | | InPost 收到一个财团提出的每股 15.60 欧元的收购要约 | InPost SA 已与 Advent、联邦快递、A&R 和 PPF 达成协议，提出每股 15.60 欧元的现金收购要约，涵盖所有未流通的 InPost 股份。该报价相比于最近几个月的平均股价具有吸引力的溢价。此次交易预计将支持 InPos | [Link](https://longbridge.com/en/news/275270161.md) | | 联邦快递在日本扩展电动车队以促进减少排放 | 联邦快递公司正在日本扩展其电动车队，新增 17 辆电动卡车，包括三菱扶桑 eCanter 和五十铃 ELF EV。这项举措旨在支持联邦快递到 2040 年实现碳中和运营的目标，并与日本的环保目标相一致。与柴油卡车相比，每辆电动汽车预计每年可 | [Link](https://longbridge.com/en/news/272652088.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.