Why FedEx's stock price fell after Q1 earnings

Yahoo Finance's Emily McCormick provides the key points to know about FedEx's Q1 earnings.

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SEANA SMITH: Let's go over to Emily McCormick. FedEx is out with its quarterly results. Emily, what do we have?

EMILY MCCORMICK: Well, Seana, we're taking a look at FedEx shares moving sharply lower in the afterhours session, down about more than 2%, as we speak. The company did miss results for its fiscal first quarter on the top and bottom line. The company citing supply chain concerns, as well as labor scarcities, for this mess. Now we saw adjusted earnings come in at $4.37 a share below the $4.92 expected. And revenue was also a bit weaker than expected here, coming in right around about $22 billion mark.

Now also of concern here was that adjusted operating margin came in at 6.8%, also well below the 8 and 1/2% expected. Now that is an area that's typically closely watched for the company. And as I mentioned earlier, FedEx also reducing its earnings outlook for the full year, reflecting these weaker than expected first quarter results.

Now, finally, just to break down some of the details here in this report, FedEx highlighting in its earnings statement this afternoon that operating results were negatively affected by an estimated $450 million year over year increase in costs due to a constrained labor market, which impacted labor availability, resulting in network inefficiencies, higher wage rates, and increased purchase transportation expenses.

And that is directly from FedEx's earnings release. It really goes to show here how these supply chain concerns and labor constraints are still weighing on individual shipping companies like FedEx. And again, we are seeing those shares moving lower this afternoon. Guys.