LOS ANGELES (Reuters) -FedEx ( FDX ) signaled caution ahead with a forecast for the current quarter that was short of analysts' target, sending shares in the delivery giant down more than 5% in after-hours trading.

The Memphis-based company forecasts fiscal first quarter adjusted profit of $3.40 to $4 per share, below analysts' estimates of $4.06 per share, according to data compiled by LSEG.

That outlook overshadowed better-than-expected results for the fiscal fourth quarter that ended May 31, when the firm said cost cuts and improved export volumes pushed operating margins higher.

Adjusted profit was $1.46 billion, or $6.07 per share, for the fiscal fourth quarter ended May 31, up from adjusted profit of $1.34 billion, or $5.41 per share, a year earlier.

Revenue was up just 0.5% to $22.2 billion.

Analysts, on average, expected earnings of $5.81 per share on revenue of $21.79 billion, according to LSEG.

FedEx ( FDX ) and rival United Parcel Service ( UPS ) are seen as economic bellwethers because they work with virtually every type of company around the globe and spot business trends before they become widely visible.

Companies around the globe are grappling with deep uncertainty over U.S. trade policies and regional tensions - most recently Israel's attack on Iran.

FedEx ( FDX ) and UPS have been locked in a long battle for market share, with demand stalled from manufacturers and other industrial customers. Delivery profits have been squeezed as many customers downshifted from fast, pricey air services to slower, lower-cost ground shipments moved by trucks and trains.

Both FedEx ( FDX ) and UPS used air volume from China-linked bargain sellers like Temu and Shein to help replace lost business-to-business volume.

But after a botched attempt early this year, President Donald Trump's administration in May ended duty-free treatment for direct-to-consumer shipments valued at less than $800 from China - stopping millions of air parcels from Temu, Shein and other retailers.