FedEx Corporation (NYSE:FDX) shares were trading 4% lower Friday afternoon following the company’s reported Q3 results, with EPS coming in at $4.59, missing the Street estimate of $4.65.

Total revenue grew 9.80% year-over-year to $23.6 billion, compared to the Street estimate of $23.49 billion. Express segment revenue increased 5% year-over-year, while adjusted operating income increased 27%, mainly via higher yields/net fuel benefit/lower variable compensation. Ground segment revenue increased 10% year-over-year, while adjusted operating income decreased 9% primarily on higher purchased transportation/ wages/expansion-related costs and network inefficiencies.

Freight revenue/adjusted operating income increased 23%/183%, respectively, via higher revenue per shipment/increased average daily shipments. With Q3 Omicron/labor challenges less harsh heading into Q4, and the company guiding a lower 2022 tax rate, adjusted EPS guidance for the full 2022-year was maintained at $20.50-21.50, compared to the Street estimates of $20.71.