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FedEx posts earnings of $2.42 a share on revenue of $12.3B

FedEx on Wednesday reported earnings excluding items that fell short of expectations as weak global economic conditions and the strong U.S. dollar weighed on results. The package-delivery giant also lowered its fiscal year outlook.

"What probably is going to weigh on the stock, more importantly, is they lowered full-year guidance by a full 20 cents," transportation analyst Don Broughton told CNBC's "Squawk Box," shortly after the earnings announcement.

FedEx said it now anticipates fiscal year adjusted earnings between $10.40 and $10.90 per share. Prior guidance was for $10.60 to $11.10 per share.

Shares of FedEx moved lower in premarket trading immediately following the announcement. (Get the latest quote here.)

The Memphis-based company reported a fiscal 2016 first-quarter net profit of $692 million or $2.42 per share, up 6 percent from $653 million or $2.26 per share a year earlier. Revenue came in at $12.3 billion.

The company had been expected to report earnings of $2.46 a share on revenue of $12.3 billion.

Meanwhile, FedEx said Tuesday it will raise a number of shipping rates in January, and will increase the surcharge on very large packages starting in November.

FedEx Express, FedEx Ground, FedEx Home Delivery and FedEx Freight shipping rates will rise an average of 4.9 percent on Jan. 4.

FedEx says SmartPost rates will also change, but it did not say how much.

The surcharge on FedEx Ground packages that weigh more than 150 pounds, are more than nine feet long or more than 13 feet 9 inches length and girth combined will rise to $110 from $57.50 on Nov. 2.

The company said Tuesday it's making that change because people are shipping larger, heavier packages, and residential deliveries have increased.

Some fuel surcharges will also be updated Nov. 2.

On Tuesday, rival United Parcel Service said Tuesday it will hire 90,000 to 95,000 employees—about the same as last year—to help handle shipping and deliveries over the holiday season.

CNBC's Matthew Belvedere and wires contributed to this report.

CORRECTION: This article has been updated to show that FedEx reported earnings excluding items of $2.42 a share.