FedEx reported its third straight quarterly revenue drop as demand has weakened following the pandemic boom.
Shares of the package delivery company are 3% lower in pre-market trading.
The company is looking to cut costs by reducing flights and grounding more aircraft.
Another move the company is making is combining its Express and Ground delivery networks into one business.
FedEx shares are 3% lower in pre-market trading. (Smith Collection/Gado/Getty Images / Getty Images)
It's a move the company hopes will cut around $4 billion in costs over the next two years, according to the Wall Street Journal.
For the quarter, FedEx reported a profit of $1.54 billion, or $6.05 a share, compared with a profit of $558 million, or $2.13 a share, in the same period a year earlier.
On an adjusted basis, the company reported per-share earnings of $4.94, beating analyst estimates.
FedEx is hoping to cut costs by at least $4 billion over the next two years. (Madison Scarpino / Fox News / Fox News)
Sales fell 10% to $21.93 billion in the quarter, missing expectations for $22.55 billion.
Looking ahead, FedEx is projecting low single-digit revenue growth and per-share earnings between $16.50 and $18.50 on an adjusted basis. Analysts polled by FactSet expected FedEx to give guidance of $18.33 a share.
Shares have gained more than 30% this year.