FedEx Corporation FDX stock is trading lower on Thursday in sympathy with United Postal Service (UPS), which fell after it reported 2024 fiscal-year fourth-quarter earnings.

UPS reported revenue of $25.30 billion, missing analysts estimate of $25.41 billion. In addition, the company reported adjusted earnings per share of $2.75, beating analysts estimate of $2.53.

Additionally, UPS reported an operating profit of $8.5 billion and an operating margin of 9.3%. The company reported cash from operations of $10.1 billion.

UPS announced it will reduce its volume with its largest customer by over 50% before the second half of 2026. The company announced this as part of a series of strategic actions it is implementing.

“We are making business and operational changes that, along with the foundational changes we’ve already made, will put us further down the path to becoming a more profitable, agile and differentiated UPS that is growing in the best parts of the market,” said Carol Tomé, CEO of UPS.

FedEx may be trading lower in sympathy with UPS, as investors might see this as an indication of broader industry challenges. This could include weaker demand or pricing pressures that may affect FedEx as well.

See Also: Northrop Grumman’s Q4 Sales Stagnate, Space Systems Struggles, But Margins And EPS Improve

FDX Price Action: At the time of writing, FedEx stock is trading 3.23% lower at $266.18, according to data from Benzinga Pro.

Image: via Shutterstock.