Goldman Sachs Trims FedEx Forecast, Cites B2B Weakness, Tariffs And Industrial Slowdown

Core Viewpoint - Goldman Sachs analyst Jordan Alliger has lowered earnings estimates for FedEx Corporation ahead of its third-quarter FY25 earnings release, reflecting ongoing transportation challenges and volume declines in B2B parcel services [1][2][3]. Group 1: Earnings Estimates - Third-quarter EPS estimates have been reduced from $4.65 to$4.40 due to transportation challenges, particularly in industrial-exposed LTL [1]. - FY25 EPS estimates have been lowered from $18.85 to$18.65, with FY26 estimates reduced from $23.30 to$22.20, and FY27 estimates cut from $26.30 to$25.50 [2]. - The adjustments reflect uncertainty surrounding tariffs and the recovery timeline for the manufacturing and B2B sectors, aligning with broader reductions across the transportation sector [3]. Group 2: Company Initiatives and Outlook - The analyst remains optimistic about FedEx's ongoing cost-cutting efforts and investments in its LTL business, which are expected to enhance operational leverage when the industrial economy rebounds [3]. - Investors can gain exposure to FedEx through ETFs such as First Trust S&P 500 Diversified Dividend Aristocrats ETF and ProShares Trust ProShares Supply Chain Logistics ETF [4]. - As of the last check, FedEx shares are down 0.71% at $241.77 [4].