Leading to an 11% decline in share price, FedEx Corp. has reported disappointing first-quarter earnings. It was shown to miss their expectations by a great amount. Citing a shift towards cheaper delivery options and weakening demand in the U.S. domestic market, the company revised its revenue growth forecast downward. CEO Raj Subramaniam is pursuing a transformation strategy to achieve $2.2 billion in savings this fiscal year. However, the expiration of a key contract with the U.S. Postal Service adds further challenges to profitability. These developments deserve careful attention from industry professionals as they indicate changing dynamics in the logistics landscape.
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Source: FreightWaves
