Benzinga | Sep 21, 2021 04:58PM EDT

Why FedEx Stock Is Trading Lower After-Hours Tuesday

Shares of FedEx Corporation (NYSE:FDX) are trading lower following the release of their Q1 earnings report which missed on EPS and beat on revenue. The company reported adjusted EPS at $4.37, missing the $5.00 analyst consensus with reported sales at $22B, beating the expectations of $21.91B.

Management attributed an estimated $450M year over year increase in costs due to a constrained labor market which resulted in network inefficiencies, higher wage rates, and increased purchased transportation expenses. Additionally, the company noted continued supply chain disruptions which have slowed U.S. domestic parcel demand compared to earlier company forecasts.

FedEx Corporation provides transportation, e-commerce, and business services in both domestic and international markets. The company pioneered overnight delivery in 1973 and remains the world's largest "express" package provider.

At the time of publication, shares of FedEx Corporation were trading 4.04% lower on the day at $241.89, reversing an earlier positive market close. The stock has a 52-week low of $230.27 and a 52-week high of $319.90.