LOS ANGELES, June 24 (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.