FedEx Freight rallies on Q3 results and improved outlook for transition period (FDXF:NYSE)

FedEx Freight Holding Company (FDXF) shares rose 15% to $126.04 after releasing financial results for the four-month period ending September 30. The company is a North American less-than-truckload carrier.

FedEx Freight (FDXF) reported its first earnings as an independent company, with sales growing 9% to $3.3B, but operating profit declined 6% and EPS fell 43% YoY to $1.54. Shares rose 14.9% on the news, despite management describing results as merely 'solid'.

FedEx Freight, now independent from FedEx Corp., is in a 'hunting phase' to grow market share. CEO John Smith reports traction in retail, grocery, and aerospace sectors. Q3 revenue rose 8.1% to $2.442B, driven by higher fuel surcharges and weight per shipment, despite a 0.7% drop in daily shipments. The company plans a 6.9% rate increase in 2027.

FedEx Freight Holding Company (FDXF) rose 15.9% after its first earnings report as a public company. Revenue increased 9.2% YoY to $3.3B, adjusted operating income up 16.4% to $510M. The company raised its 2026 outlook, with adjusted operating income now expected between $695M-$715M and adjusted EPS between $2.80-$2.90.

Stifel maintained a Hold rating on FedEx Freight (FDXF) with a $129 target. The stock is down 27% over six months. FedEx Freight reported $3.3B revenue for its transition period, up 9% YoY, with adjusted EPS of $2.15. Stifel sees potential but wants clearer evidence of sustained yield improvement.

FedEx Freight (FDXF) reported Q3 revenue growth of 9.2% and raised its outlook for the transition period. Adjusted earnings rose 24.6% to $2.15 per share. The company expects Q4 adjusted profit of $0.65-$0.75 per share on sales of $2.30B-$2.37B, above estimates. Operating income declined 6.1% to $383M, but adjusted operating income increased 16.4% to $510M.