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NEWS
Rate Cuts Ramp Stocks Globally

U.S. stocks soared to new all-time highs in a broad-based global rally. Investors and traders have seemingly adopted an optimistic view of the Fed kicking off its easing cycle with a 50 bps bang. Defensive stocks lagged on the day, with tech and other cyclical sectors shining. 👀

Today's issue covers FedEx’s latest earnings delivery, global economic news you can use, and major partnership announcements from PayPal and Amazon, Darden Restaurants and Uber, and others. 📰

Here’s the S&P 500 heatmap. 8 of 11 sectors closed green, with technology (+2.95%) leading and utilities (-0.61%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $RZLV, $ZEO, $GSK, $PYPL, $QURE 📉 $KSPI, $SKX, $PGNY, $ARQT, $CIFR*

*If you’re a business and want to access this data via our API, email us.

EARNINGS
FedEx’s Latest Earnings Delivery 📦️ 

FedEx delivered its first-quarter earnings for FY 2025, but the package came with a few dents. Earnings per share (EPS) fell, and the company downgraded its forecast for the year. Here’s the breakdown of what landed. 🚛 

• EPS:

  • $3.21 (GAAP), $3.60 (adjusted)

  • Down from $4.23 (GAAP), $4.55 (adjusted) last year

• Revenue:

  • $21.6 billion (flat from $21.7 billion in FY 2024)

• Operating Income:

  • $1.08 billion (GAAP), $1.21 billion (adjusted)

  • Down from $1.49 billion (GAAP), $1.59 billion (adjusted)

• Operating Margin:

  • 5.0% (GAAP), 5.6% (adjusted)

  • Down from 6.8% (GAAP), 7.3% (adjusted)

• Net Income:

  • $0.79 billion (GAAP), $0.89 billion (adjusted)

  • Down from $1.08 billion (GAAP), $1.16 billion (adjusted)

FedEx’s First-Class Struggles

This quarter’s delivery was weighed down by a shift in customer demand, with less priority mail and more deferred services. Throw in higher operating costs and one fewer day of operations, and it’s clear why these results weren’t exactly overnight success material. ⚓️ 

FedEx’s DRIVE cost-cutting initiative helped cushion the blow, but the heavy lifting still lies ahead.

FedEx did manage to complete a $1 billion share buyback during the quarter, giving EPS a slight boost. They’re planning for another $1.5 billion repurchase later in fiscal 2025. 💵 

Outlook: Slower Delivery Ahead

FedEx revised its full-year outlook, which is now a bit more like ground shipping than express:

• Earnings per share (adjusted):

  • $17.90 to $18.90, down from $18.25 to $20.25

  • Excluding optimization costs, EPS is expected to be $20.00 to $21.00, down from $20.00 to $22.00

• Revenue growth:

  • Low single digits, downgraded from low-to-mid single digits

FedEx is trying to re-route itself with its cost-cutting efforts, but for now, it’s clear that the journey ahead might take longer than expected. 🦥 

SPONSORED
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This Gen AI-powered sales engine has the potential to tremendously improve search, advice, and revenue generation for digital retail merchants! Its platform transforms a merchant’s online store, their call-centers, their social media interactions and even in-store kiosks into personal, conversational, and efficient online shopping experiences. This is expected to increase orders and reduce costs.

The company’s clear monetization strategy and attractive financial model could make it a stand-out prospect for investors. With several partnerships already secured and even an agreement with the Kingdom of Saudi Arabia, this organization is aiming to establish itself as a key player in the global AI arena.

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.