FedEx (FDX) shares plummeted 5.08% in after-hours trading on Thursday following the company's release of its third-quarter earnings report and reduced full-year guidance. The shipping giant's stock decline came as it grapples with ongoing economic challenges and weakening demand in its business-to-business segment.

For the third quarter, FedEx reported adjusted earnings per share of $4.51, falling short of the $4.54 analyst consensus estimate. While quarterly revenue rose to $22.2 billion from $21.7 billion a year ago, exceeding expectations, the company's outlook took center stage. FedEx lowered its full-year revenue forecast, now projecting flat to slightly down year-over-year growth compared to its previous forecast of approximately flat. The company also cut its adjusted earnings per share guidance to a range of $18.00 to $18.60, down from the prior $19.00 to $20.00 range.

FedEx CEO Raj Subramaniam cited a "very challenging operating environment" as a key factor in the company's performance. The revised outlook reflects continued weakness and uncertainty in the U.S. industrial economy, particularly impacting demand for business-to-business shipments. As FedEx continues to navigate these headwinds, investors will be closely watching the company's ongoing transformation efforts and its ability to adapt to shifting macroeconomic conditions.