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FedEx CEO's warning of worldwide recession tanks shares, shakes market

Added 09-16-22 06:18:03pm EST - “FedEx's stock plunged more than 21% in Friday trading.” - Nypost.com

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Posted By TheNewsCommenter: From Nypost.com: “FedEx CEO’s warning of worldwide recession tanks shares, shakes market”. Below is an excerpt from the article.

FedEx CEO Raj Subramaniam’s ominous warning of a worldwide recession drove the shipping company’s shares to their worst day in decades Friday and sent Wall Street’s main indexes to near two-month lows.

FedEx’s stock plunged more than 21% after the company reported a major slump in global shipping volumes and withdrew its full-year guidance on Thursday in a pre-earnings announcement. Friday’s decline was the worst one-day result in company history dating to at least 1978, according to Dow Jones Market Data.

The company, which will report its first-quarter earnings next week, expects adjusted earnings per share to be $3.44 on revenue of $23.2 billion for the quarter. Analysts polled by Refinitiv had expected earnings per share of $5.14 on revenue of $23.59 billion.

The company’s struggles reverberated through the broader market after CNBC’s Jim Cramer asked Subramaniam in an interview Thursday evening if he felt the economy was headed for a “worldwide recession.”

“We are a reflection of everybody else’s business, especially the high-value economy in the world,” the FedEx CEO added.

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