FedEx ( FDX ) shares tumbled in extended trading Thursday after the company missed analysts’ estimates with its fiscal first-quarter results and slashed its full-year outlook.

The shipping company posted first-quarter earnings per share (EPS) of $3.21 on revenue of $21.6 billion, both of which missed analysts’ expectations compiled by Visible Alpha.

CEO Raj Subramaniam called the period a “challenging quarter,” hindered by higher operating expenses and weaker demand for priority shipping services.

FedEx said it now anticipates year-over-year revenue growth in the low single digits, down from a low-to-mid single digit increase. Its expects EPS of between $17.90 to $18.90, down from $18.25 to $20.25. The revised range came in below the analyst consensus of $19.80.

Notably, FedEx will also lose out on one source of revenue later this month, when its contract with the U.S. Postal Service (USPS) ends.

Shares of FedEx tumbled over 10% to $269.85 in extended trading Thursday following the release.

CORRECTION—Sept. 19, 2024: This article has been updated to reflect FedEx reported results for the fiscal first-quarter.