Shares in US delivery firm FedEx Corp shed 4.2 percent on Thursday after labour woes tempered its 2022 earnings forecast that missed Wall Street expectations.

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The Memphis-based company's shares fell USD 12.79 to USD 290.90 in extended trading, after it forecast fiscal 2022 earnings, excluding some items, of USD 18.90 to USD 19.90 per share - below analysts' average estimate USD 20.37, according to Refinitiv data.

FedEx founder and CEO Fred Smith said on a conference call that he expects FedEx margins to continue to grow this year, but that operations are being crimped by an inability to find enough workers.

For example, its inability to attract new workers such as package handlers is driving higher overtime costs and requiring packages to be routed around areas with labour shortfalls, Chief Operating Officer Raj Subramaniam said.

The hiring challenges "have contributed to recent service levels that do not meet our own high expectations," Subramaniam said.

Data from Convey Inc shows FedEx lags both UPS and the US Postal Service when it comes to on-time deliveries.

FedEx recently suspended freight shipping for roughly 1,400 customers to help relieve pressure on its network - which has been running at near full tilt for much of the pandemic.

FedEx on Thursday reported a slightly higher than expected increase in quarterly profit and revenue.

Fiscal fourth quarter adjusted net income rose to USD 1.36 billion, or USD 5.01 per share, from USD 663 million, or USD 2.53 per share, a year earlier.

Pandemic-fuelled demand for e-commerce services supported higher fees and robust volumes contributed to cost savings.

Revenue increased 30 percent to USD 22.6 billion.

Analysts expected fourth-quarter earnings of USD 4.99 per share and revenue of USD 21.5 billion, according to Refinitiv.

FedEx and rival United Parcel Service Inc are raising rates and adding surcharges as retailers clamour to hand off more packages for delivery.

Investors are eager to know how each company will continue to grow profits from Internet retail as the pandemic ebbs. They also want to see a strong rebound in lucrative overnight business shipments as workers return to offices.

FedEx shares finished the regular trading session up roughly 150 percent from March 1, 2020 - some two weeks before US states and jurisdictions began closing businesses to curb the spread of the coronavirus.