FedEx (FDX.US) stock plunged more than 8% during today's session after the transportation company posted mixed quarterly results. FedEx earned $4.37 a share, while analysts expected earnings of $4.91 a share. Revenue of $22 billion slightly beat market expectations of $21.926 billion. Results were negatively affected by an estimated $450 million year over year increase in costs due to a constrained labor market which impacted labor availability, which in turn caused network inefficiencies, higher wage rates, and increased purchased transportation expenses. "Overcoming these staffing and retention challenges is our utmost priority," said president and COO Raj Subramaniam. Company now plans to introduce paid premiums particularly for weekend shifts, increased tuition reimbursement and sponsorship of a national hiring day on September 23 in order to hire approximately 90,000 employees over the holiday period. When it comes to the 2022 fiscal year, FedEx expects adjusted earnings in the region of $17.75 to $21.50, a 75 cent reduction to its prior forecast.
FedEx (FDX.US) stock launched today's session sharply lower and price broke below the lower limit of the 1:1 structure. Currently stock is testing major support at $232.15 which coincides with 38.2% Fibonacci retracement of the upward wave launched back in March 2020. Source: xStation5
