By Colin Kellaher
Shares of FedEx Corp. slid 20% in premarket trading Friday after the package-delivery giant said its quarterly revenue and earnings would fall short of expectations amid declining worldwide volume.
The Memphis, Tenn., company also said it was cutting costs and pulled its full fiscal-year guidance.
Analysts at Citigroup, who last week had cut their rating on FedEx to neutral from buy and lowered their price target on the stock to $225 from $270, reduced their target to $180 after the update.
In a research note, analysts Christian Wetherbee and Elijah Winski said FedEx's preliminary fiscal first-quarter numbers were "significantly worse than we feared," and they said they have greater certainty about lower fiscal-year results.
FedEx shares, which closed Thursday at $204.87, were down to $163.99 in premarket trading. A 20% drop in regular trading would erase more than $10 billion in market capitalization.
Shares of rival United Parcel Service Inc., which closed Thursday at $185, shed 6.8% premarket.
Write to Colin Kellaher at email@example.com
(END) Dow Jones Newswires