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Updates from 4:30 p.m. ET with conference call comments.

Delivery services giant Fedex (FDX) - Get Free Report reported second-quarter earnings after the market closed Tuesday that missed analyst expectations during the firm's important holiday shipping season, sending shares lower.

FedEx reported adjusted earnings per share of $2.80 on $14.9 billion in revenue. Analysts surveyed by FactSet had expected the Memphis company to post earnings of $2.90 on $14.9 billion in revenue.

The company was trading after-hours down 3% to around $193 as investors pondered the disappointing results.

"FedEx increased revenue and operating income despite continued low growth rates in the global economy. We are in the home stretch of our peak shipping season, and our service levels are high, thanks to the outstanding efforts of our hundreds of thousands of team members around the world," CEO Fred Smith said in a statement.

But during a conference call with analysts, company officials voiced concerns about aspects of incoming President Donald Trump's trade agenda that could hit FedEx in the pocket book.

FedEx CFO Alan Graf said he is optimistic about Trump and the GOP's broader promises of tax reform, but is hesitant to embrace the proposal for a border-adjustment tax that would tax goods imported into the U.S.

"We are concerned about the border-adjustment concepts and are trying to figure out how it is going to affect us directly," Graf said.

CEO Smith was blunter about Trump's protectionist attitude on trade and his tough rhetoric about China. Trump has pledged to declare China as a currency manipulator. FedEx is exposed to China through its international shipping business.

"The prospect of significantly reducing trade is, in our opinion, significantly dangerous," Smith said. "I think what Alan said to you [all] about the border-adjustable tax is just spot on... This is just very destructive of trade."

Revenue in FedEx's express and ground segments increased by 2% and 9% year over year, respectively, to $6.74 billion and $4.42 billion. The company chalked up its growth in express to higher package volume and base rates and in ground to higher volume and yields.

FedEx said it expects to post fiscal year 2017 EPS of $11.85 to $12.35.