Sep 16, 2015 2 min read

MEMPHIS, Tenn. (AP) — FedEx’s first-quarter profit missed analysts’ estimates, and the package-delivery company lowered its fiscal 2016 adjusted earnings forecast.

For the period ended Aug. 31, the Memphis, Tenn.-based company earned $692 million, or $2.42 per share. A year earlier it earned $653 million, or $2.26 per share.

The results fell short of Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of $2.44 per share.

Revenue increased to $12.3 billion from $11.7 billion, topping Wall Street’s forecast. Six analysts surveyed by Zacks expected $12.23 billion.

Revenue for the company’s ground division climbed 29 percent.

FedEx now anticipates fiscal 2016 adjusted earnings between $10.40 and $10.90 per share. Its prior guidance was for $10.60 to $11.10 per share.

Analysts surveyed by FactSet predict $10.84 per share.

Executive Vice President and Chief Financial Officer Alan B. Graf Jr. said in a written statement that the revised outlook was due mostly to weaker less than truckload industry demand, higher than expected self-insurance reserves and operating costs at FedEx Ground.

The announcement of its financial results and lowered guidance comes one day after FedEx Corp. said that it will raise a number of shipping rates in January, and will increase the surcharge on very large packages starting in November. Some fuel surcharges will also be updated on Nov. 2.