FedEx Freight Beats on First Standalone Results and Raises Its Outlook
FedEx Freight reported its first results as an independent company for the four-month transition period ended September 30, with revenue up 9.2% to $3.3bn and adjusted operating income up 16.4% to $510m. Adjusted diluted EPS was $1.49 for the July-to-September period, while adjusted operating margin for the four months reached 15.5%. The company raised its outlook, including adjusted EPS of $2.80 to $2.90 for June through December, and shares closed up 14.91% after the report.
Why it matters
The results establish FedEx Freight's initial performance as a standalone carrier and raise the earnings outlook for the remainder of the year. Management expects stronger pricing and volumes, while analyst views remain mixed and focus on whether fuel-adjusted pricing can improve.
Key facts
- 1FedEx Freight's four-month revenue was $3.28bn, an increase of 9.2%. globalbrandsmagazine.com
- 2Adjusted operating income rose 16.4% to $510m, and adjusted operating margin increased to 15.5% for the four-month period. globalbrandsmagazine.com
- 3Adjusted diluted EPS was $1.49 for the July-to-September period, above the analyst consensus of $1.38. ibtimes.com.au
- 4FedEx Freight raised adjusted EPS guidance for June through December to $2.80 to $2.90 from $2.40 to $2.60. globalbrandsmagazine.com
- 5The shares closed at $126.04, up 14.91% from the prior close. ibtimes.com.au
Open questions
- The materials report different July-to-September revenue figures and growth rates on what appears to be the same basis: $2.44bn and 8.1% in material 1 versus $2.46 billion and 12% in material 2.
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.