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Why FedEx (FDX) Shares are Falling Today

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On Monday, shares are of transportation and logistics company FedEx Corp. (FDX - Free Report) are falling, down roughly 3% to $212.56 per share in mid-morning trading after it said the Petya cyberattack that occurred last month would negatively impact its fiscal 2018 results.

In a securities filing, FedEx said that the global cyberattack known as Petya has significantly affected its TNT Express business, which operates throughout the Middle East and Africa, Asia-Pacific, Europe, and South America. The company said TNT Express customers are still experiencing widespread service delays, but added that no data breach or data loss to third parties is known as of today.

Petya was a massive ransomware attack back in June that spread rapidly through networks that used Microsoft (MSFT - Free Report) Windows. The attack started in Ukraine, but wreaked havoc all over the globe, and lead to thousands of PCs and data being locked up and held for ransom.

"Although we cannot currently quantify the amounts, we have experienced loss of revenue due to decreased volumes at TNT Express and incremental costs associated with the implementation of contingency plans and the remediation of affected systems," FedEx said in a statement.

“In addition to financial consequences, the cyber-attack may materially impact our disclosure controls and procedures and internal control over financial reporting in future periods,” the company continued.

FedEx is up about 16.7% year-to-date, and remains a #3 (Hold) on the Zacks Rank. The company reports its first-quarter fiscal 2018 results on September 19. Zacks expects FedEx to report earnings of $3.19 per share and sales of $15.4 billion, reflecting year-over-year growth of 9.98% and 5%, respectively.

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