FedEx Corporation underperformed and underwhelmed investors in 2015. While the company made some smart moves, FedEx enjoyed its fair share of less-than-positive headlines. Here are three of the corporation's worst moments this year.
1. Disruption destruction?
3. Quarterly crunch
FedEx recognizes the need to adapt its business model. In many ways, 2015 has been a rebuild year as the corporation concentrated on strategic acquisitions, doubled down on e-commerce-related systems and infrastructure, and dived headfirst into a cost-cutting profit improvement program.
But even with subdued expectations, its earnings reports have disappointed investors for three of the past five quarters. While FedEx pulled through last week with $2.58 EPS (earnings-per-share), $0.07 above expectations, it kept its fiscal 2016 EPS guidance at the same downgraded range it noted in its previous quarterly report.
Conservative estimates aren't necessarily a bad thing. Given its recent disappointing results, FedEx Corporation may be right in its attempt to recalibrate analyst expectations. But its most recent reports all point to larger issues that every investor needs to be aware of: an unsteady U.S. economy, weaker global trade, and higher operating costs for some segments.
Bad headlines can be symptoms of a larger disease. But in FedEx's case, it's plowing ahead with new strategies to combat many of 2015's worst moments. Investors will need to keep a close watch on FedEx Corporation's coming quarter and year to see whether those strategies will ultimately pay off for their profits and your portfolio. If not, 2015's worst headlines may pale in comparison to 2016's.
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The article The Worst FedEx Corporation Headlines in 2015 originally appeared on Fool.com.
Justin Loiseau owns shares of Amazon.com and United Parcel Service and loves getting packages in the mail. The Motley Fool owns shares of and recommends Amazon.com. The Motley Fool recommends FedEx and United Parcel Service. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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