NEW YORK (TheStreet) -- FedEx (FDX - Get Report) shares are tumbling 2.93% to $149.49 in pre-market trading on Wednesday after the shipping company posted its first quarter fiscal 2016 earnings that missed analysts' forecasts. Revenue was in line with estimates.

For the quarter ended August 31, the company posted earnings of $2.42 a share on revenue of $12.3 billion.

Analysts had forecast the company to earn $2.46 on revenue of $12.3 billion. 

In the same period the previous year, the company posted earnings of $2.26 a share on revenue of $11.7 billion.

TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio commented on FedEx this morning, saying: "This estimate cut shows how wrong it would be to raise rates. The part of its business that was weak is really its core delivery service which means there is genuine slowing."

During the latest quarter, revenue from its biggest segment, express, fell 4% year-over-year to $6.59 billion, the company said.

Despite its profit missing expectations, the company's sales from its ground segment grew 29% year-over-year to $3.83 billion due to the acquisition of GENCO Distribution Systems.

Overall, as demand in online shipping grows, FedEx is trying to meet them, the company stated. 

Looking ahead, the company reduced its earnings outlook for the fiscal year. It now expects to earn between the range of $10.40 to $10.90 a share for the fiscal year, down from its previous expectations of a range of $10.60 to $11.10 a share.

Separately, TheStreet Ratings team rates FEDEX CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate FEDEX CORP (FDX) a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."

You can view the full analysis from the report here: FDX Ratings Report

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