11:31 AM EDT, 09/20/2024 (MT Newswires) -- FedEx's ( FDX ) disappointing fiscal Q1 earnings reflected both slack demand and underperformance on cost savings, Oppenheimer said Friday in a report.

The $390 million from the company's DRIVE initiative to reduce expenses trailed the implied run-rate of the fiscal 2025 guidance of $2.2 billion, Oppenheimer said. Revenue eased in the quarter on "reduced demand for priority services, increased demand for deferred services and constrained yield growth," the company said Thursday.

The company affirmed its DRIVE cost-savings guidance and expects fiscal 2025 adjusted operating income of $7 billion, up from about $6.2 billion in fiscal 2024, Oppenheimer said.

Oppenheimer lowered its forecast for FedEx's ( FDX ) fiscal 2025 adjusted earnings $20.50 a share from $21, consistent with the midpoint of the company's tightened guidance.

Oppenheimer has a perform rating on the stock without any price target. At least a dozen other analysts reduced their price targets on FedEx ( FDX ).

Shares of FedEx ( FDX ) slumped 15% in recent trading Friday.

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