RTTNews | Sep 22, 2021 07:06AM EDT

07:05 Wednesday, September 22, 2021 (RTTNews.com) - Shares of FedEx Corporation (FDX) are down more than 5% in the pre-market trade on Wednesday after the company's first quarter earnings missed analysts' view. The company also slashed its full-year adjusted earnings outlook, below the Street view.

Net income in the first quarter decreased to $1.11 billion or $4.09 per share from $1.25 billion or $4.72 per share in the same quarter a year ago, impacted by higher cost due to labor shortage.

Excluding items, earnings of $4.37 per share missed the average estimate of 24 analysts polled by Thomson Reuters at $5 per share.

However, revenue for the quarter increased to $22 billion from $19.3 billion last year. The consensus estimate was for $21.91 billion.

Looking forward, the company has reduced its full-year adjusted EPS outlook to the range of $19.75 - $21.00 from $20.50 - $21.50 provided earlier. Analysts expect earnings of $21.2 per share for the period.

"Our results for the first quarter reflect higher operating costs we are incurring during this uncertain and challenging operating environment," said Michael C. Lenz, FedEx Corp. executive vice president and chief financial officer. "While we expect these conditions to continue near-term, we expect a gradual improvement in labor availability combined with our proactive revenue management actions to mitigate the ongoing impact of these headwinds on our results and position us for earnings growth in fiscal 2022."

FDX closed Tuesday's regular trade at $252.07, up 0.51%. The stock is currently at $237.80.

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