FedEx Corporation (NYSE:FDX ) late Tuesday [Mar 21, 2017 | 4:14pm ] reiterated its 2017 outlook, but its much lower than expected third quarter earnings results sent shares plunging up to 4% in aftermarket trading.

Written by StockNews.com

The Memphis-based package delivery giant reported Q3 earnings per share (EPS) of $2.35, which was $0.27 worse than the Wall Street consensus estimate of $2.62.

Revenues rose 18.1% from last year to $15 billion, matching analysts’ $15 billion view.

FDX said its FedEx Express Segment revenue gained 3% from last year, helped by higher rates and volumes. Its FedEx Ground Segment also saw solid gains, with higher base rates and commercial volume growth leading the way, although residential volume lagged. Finally, the company’s FedEx Freight Segment revenue rose on better rates and higher fuel surcharges, while average daily shipments were flat.

Looking ahead, FedEx reaffirmed its 2017 EPS guidance of $11.85 to $12.35, which straddles Wall Street’s $11.93 estimate. FDX cut its capex outlook for the year, however, to $5.3 billion from $5.6 billion, mainly due to lower planned FedEx Ground spending.

The company commented on its results via press release:

“Our worldwide FedEx team delivered an outstanding peak season. Even with our highest volumes ever, we achieved record service levels,” said Frederick W. Smith, FedEx Corp. chairman and chief executive officer. “We are confident our strategic investments to expand our global scope and portfolio of solutions position FedEx for greater long-term profitable growth as we adapt to meet the evolving needs of our customers.”

Despite the encouraging commentary from management, investors weren’t too pleased with the company’s results. FedEx shares fell $7.57 (-3.95%) to $184.27 in after-hours trading Tuesday. Year-to-date, FDX had gained 3.24% prior to today’s report, versus a 4.56% rise in the benchmark S&P 500 index during the same period.