04:52 PM EDT, 09/19/2024 (MT Newswires) -- FedEx's ( FDX ) fiscal first-quarter results unexpectedly declined year-over-year as the parcel delivery company grappled with weak demand trends.

Adjusted per-share earnings declined to $3.60 in the three months ended Aug. 31 from $4.55 a year earlier. The Capital IQ-polled consensus was for an increase to $4.77. Revenue fell to $21.6 billion from $21.7 billion, compared with Wall Street's $21.91 billion view.

FedEx's ( FDX ) shares were down almost 9% in after-hours trading.

"First-quarter results were negatively affected by a mix shift, which reduced demand for priority services, increased demand for deferred services, and constrained yield growth," the company said in a statement. "In addition, higher operating expenses and one fewer operating day negatively affected the quarter's results."

Operating results at Federal Express, representing an integrated air-ground express network, decreased amid lower US domestic priority package volume. Higher wage costs and increased purchased transportation rates also impacted the results at Federal Express, which absorbed ground and services operations on June 1.

Freight, which continues to provide less-than-truckload transportation services as a separate subsidiary, reported a drop in operating results during the quarter due to factors including lower weight per shipment and reduced priority shipments.

In June, FedEx ( FDX ) said it was conducting a review of freight operations and would likely complete it by the end of the calendar year.

For fiscal 2025, the company expects non-GAAP EPS of $17.90 to $18.90 before certain retirement plan adjustments, compared with the prior forecast of $18.25 to $20.25. After excluding business optimization costs, the outlook was pegged at $20 and $21, lowering the high end of the previous range from $22.

Analysts polled by Capital IQ project normalized EPS at $20.93.

FedEx ( FDX ) expects revenue to grow by a low-single digit in fiscal 2025 year-over-year, compared with the prior forecast of a low- to mid-single-digit increase.

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