What caused FDX's EPS to drop in Q1 2025?

FedEx's EPS dropped in Q1 2025 due to a combination of factors:

1. Challenging Operating Environment: FedEx faced a challenging operating environment, which included a compressed peak season and severe weather events. This likely resulted in increased costs and reduced profitability.
2. Weaker Industrial Outlook: The company anticipated a weaker industrial outlook ahead, which may have led to pressure on shipping volumes. The downturn in the industrial economy continued to affect FedEx’s high-margin business-to-business (B2B) volumes.
3. Contract Expirations and Inflationary Pressures: The expiration of the United States Postal Service contract and the impact of inflationary pressures on the cost base also contributed to the challenges faced by FedEx in Q1 2025. These factors likely affected the company's margins and profitability.

In summary, FedEx's EPS drop in Q1 2025 was likely a result of a combination of factors including a challenging operating environment, weaker industrial outlook, contract expirations and inflationary pressures.