FedEx Corporation (FDX.US) faced a downgrade from Evercore on the eve of its financial report, warning that demand headwinds could suppress earnings per share.

FedEx Corporation (FDX.US) saw its pre-market trading price decline on Wednesday, after investment firm Evercore ISI downgraded the stock from "Outperform" to "In Line." The firm stated that FedEx Corporation is currently facing sustained demand headwinds, which may pose greater risks to its short-term earnings per share (EPS) expectations. Analyst Jonathan Chah Pool Corporation emphasized that two major factors will add extra pressure on FedEx Corporation: gradual elimination of "de minimis exemptions" globally, and unresolved volume challenges in its FedEx Freight business. He cautioned, "We believe that, as demonstrated by the success of the 'DRIVE plan' over the past two years, FedEx Corporation can offset some of the adverse impacts on the revenue side through network restructuring related to the '2.0 network'; however, this year's cost savings benefits are likely to be concentrated in the second half and with the continuous accumulation of volume and revenue pressures, we no longer believe that simply improving production efficiency can completely reverse the macro headwinds." In addition, Evercore ISI also lowered FedEx Corporation's target price from $249 to $243. As of the time of writing, in pre-market trading, FedEx Corporation's stock price fell by 0.5%, with a 52-week price range of $194.30 to $308.53. It is reported that FedEx Corporation is scheduled to release its earnings report after the market closes on September 18th.