RTTNews | Sep 22, 2021 01:39PM EDT

13:39 Wednesday, September 22, 2021 (RTTNews.com) - Delivery giants, FedEx Corporation (FDX) dropped 9% Wednesday after the company reported a lower income in the first quarter. The earnings also failed to meet the Street estimates.

FedEx reported that the net income of the company dropped to $1.11 billion or $4.09 earnings per share, compared t0 $1.25 billion or $4.72 per share last year. On an adjusted basis, the net income dropped to $1.19 billion or $4.37 per share, from $1.28 billion or $4.87 earnings per share last term. On an average, 24 analysts polled by Thomson Reuters estimated the earnings to be $5.00 per share.

The revenue for the company increased 14% to $22.00 billion, from $19.3 billion last year. Analysts expected a revenue of $21.91 billion.

The company said that the earnings were impacted by a $450 million increase in the labor market and higher costs of operations. Due to these, the company is also increasing the tariffs of its services.

FedEx also slashed it's annual outlook under "more challenging than anticipated" conditions. Earnings for the full year is expected to be around $18.25 to $19.50, lowered from $18.90 to $19.90, mentioned in June.

Currently, the shares are trading at $232.47, down $19.65 or 7.80% from their previous close at $252.07. The shares opened at $234.18 in the morning and in the 52-week period, the shares have ranged between $228.98 and $319.90.

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