FedEx sees FY18 ex-items EPS $12.00-$12.80, consensus $13.38
The company is lowering its FY18 forecast due to the estimated full-year impacts of the TNT Express cyberattack. Before year-end MTM pension accounting adjustments, earnings are now projected to be $11.05-$11.85 per diluted share for FY18. The earnings forecast before year-end MTM pension accounting adjustments and excluding expenses related to TNT Express integration and certain Q1 FedEx Trade Networks legal matters is now $12.00-$12.80 per diluted share for FY18. These forecasts assume moderate economic growth and continued recovery from the cyberattack. FedEx is unable to forecast the FY18 year-end mark-to-market, or MTM, pension accounting adjustments. As a result, the company is unable to provide FY18 earnings guidance on a GAAP basis. The capital spending forecast for FY18 remains $5.9B. "The impact of the cyberattack on TNT Express and lower-than-expected results at FedEx Ground reduced our Q1 earnings," said CFO Alan Graf, Jr. "We are currently executing plans to mitigate the full-year impact of these issues."