FedEx Lowers FY22 Outlook; Shares Down 4%

(RTTNews) - Shares of FedEx Corporation (FDX) slipped over 4% in extended trading session on Tuesday after the company lowered its outlook for the full year 2022.

The company now expects earnings of $18.25 to $19.50 per share before the MTM retirement plan accounting adjustments, compared to the prior forecast of $18.90 to $19.90 per share.

The company expects earnings of $19.75 to $21.00 per share before the MTM retirement plan accounting adjustments and excluding estimated TNT Express integration expenses and costs associated with business realignment activities, compared to the prior forecast of $20.50 to $21.50 per share.

Analysts polled by Thomson Reuters currently estimate earnings of $21.20 per share for the full year.

"Our results for the first quarter reflect higher operating costs we are incurring during this uncertain and challenging operating environment," said CFO Michael Lenz. "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 trading at $252.07, up $1.27 or 0.51%, on the NYSE. The stock, however, slipped $10.12 or 4.01% in the after-hours trading.