Reuters FedEx cut its fullyear revenue forecast and reported quarterly profit that fell far short of analysts39; targets on Tuesday, sending shares tumbling 9.8, as its largest Express business saw demand from the U.S. Postal Service drop.

The global delivery firm39;s shares fell to 252.58 in extended trading after closing at 280 on Tuesday. The results also dragged down shares of rival United Parcel Service by 2.9.

FedEx said adjusted earnings for the quarter that ended Nov. 30 jumped 23 to 1.01 billion, or 3.99 per diluted share. But the result fell 19 cents per share short of analysts39; estimate, according to LSEG data.

We expect revenue will continue to be pressured by volatile macroeconomic conditions negatively affecting customer demand for our services across our transportation companies for the remainder of the fiscal year that ends May 31, FedEx said in a regulatory filing.

FedEx now expects a lowsingledigit percentage decline in revenue from last year, compared with its prior forecast of roughly flat results.

In a nod to investors who have pressured the company to slash costs and improve profits, FedEx said it expects to repurchase an additional 1 billion of common stock during fiscal 2024.

Operating income during the quarter dropped 60 at the company39;s airbased Express unit. That was partly due to falling volume from the U.S. Postal Service, which has been shifting more packages from highermargin air services to more economical ground services….