The nation’s largest less-than-truckload carrier, FedEx Freight, is on track to become a standalone public company by June of next year. Parent company FedEx said Thursday it plans to spend $600 million enhancing IT infrastructure and systems ahead of the spinoff. Join the leaders shaping freight’s future atF3: Future of Freight Festival, Oct 21-22.Network with the industry’s best and discover what’s next. Register now! Shares of FedEx Freight will be listed on the New York Stock Exchange under the ticke ...

Core Viewpoint - FedEx has restored its full-year revenue and profit guidance, indicating a clearer outlook for its business despite ongoing tariff pressures [1] Financial Performance - For fiscal year 2026, FedEx expects adjusted earnings per share to be between $17.20 and $19, slightly below the analyst average estimate of $18.25 [1] - The company anticipates revenue growth of up to 6% for the year, significantly exceeding the analyst forecast of 1.2% [1] - In the first fiscal quarter, FedEx reported adjusted net income of $910 million (or $3.83 per share), surpassing last year's $890 million (or $3.60 per share) and the analyst average estimate of $3.59 [3] - Quarterly revenue reached $22.24 billion, exceeding the market expectation of $21.66 billion [3] Business Operations - FedEx's strong performance is attributed to increased volume in high-margin priority delivery packages, a rise in domestic package volume, and cost-cutting measures [1] - The company has implemented a multi-billion dollar cost reduction plan, achieving a target of $1 billion in cost savings for the fiscal year [2] - Operating margin improved from 5.2% to 6%, supported by a 5% increase in domestic average daily deliveries [2] Market Context - FedEx's stock price rose over 5% in after-hours trading, although it has declined approximately 18% year-to-date, while the S&P 500 index has increased by about 13% [2] - The company is facing challenges from the termination of a long-standing trade policy that exempted low-value packages from tariffs, creating uncertainty in global freight operations [2] - Despite a 3% decline in international average daily export volume, FedEx's overall average daily package volume increased by 4%, and revenue per package rose by 2% [2] Strategic Initiatives - FedEx plans to continue its stock buyback program, having repurchased $500 million worth of shares in the first quarter [3] - The company aims to complete the spin-off of its freight business by June 2026 [3]

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Market Performance - Major market indexes reached all-time highs, with the Dow increasing by 124 points (+0.27%) to 46,142, the S&P 500 rising by 31 points (+0.48%) to 6,631, the Nasdaq surging by 209 points (+0.94%) to 22,470, and the Russell 2000 climbing by 62 points (+2.60%) to 2,467 [1] Bond Market - Bond yields continued to rise, with the 10-year yield increasing from +4.08% to +4.12% and the 2-year yield rising by 6 basis points to +3.57% [2] NVIDIA and Intel Partnership - NVIDIA invested $5 billion into Intel to integrate NVIDIA's AI and accelerated computing stack with Intel's CPUs, projected to generate $150 million in annual notebook sales [3] - Following the investment, Intel's shares surged nearly +23%, marking its best single-day trading performance in four decades, while NVIDIA shares increased by +3.5% [4] FedEx Earnings Report - FedEx reported fiscal Q1 earnings of $3.83 per share, exceeding the Zacks consensus of $3.65 and the previous year's $3.60, with revenues of $22.24 billion surpassing expectations of $21.78 billion [5] - The revenue guidance for the full fiscal year was revised upward to +4-6% from +1.2%, while the midpoint for earnings guidance was slightly lowered [6]

For the quarter ended August 2025, FedEx (FDX) reported revenue of $22.24 billion, up 3.1% over the same period last year. EPS came in at $3.83, compared to $3.60 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $21.78 billion, representing a surprise of +2.15%. The company delivered an EPS surprise of +4.93%, with the consensus EPS estimate being $3.65.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they com ...

Key TakeawaysLennar Corporation (LEN) reported mixed third-quarter 2025 earnings, with EPS beating estimates at $2.29 but revenue falling short of expectations at $8.81 billion, alongside a significant year-over-year EPS drop and conservative Q4 guidance.FedEx (FDX) is set to complete its Amazon (AMZN) onboarding by the third quarter, focusing on larger, heavier packages, marking a significant rekindling of their partnership and potentially bolstering holiday delivery capacity.Japan's Sanae Takaichi plans t ...

Financial Data and Key Metrics Changes - Revenue increased by 3% year over year, driven by strength in U.S. Domestic package services [7] - Adjusted operating income grew by 7% [7] - Adjusted earnings per share reached $3.83, up 6% year over year [36] Business Line Data and Key Metrics Changes - Federal Express Corporation (FEC) revenue increased by 4% year over year, with adjusted operating income growing by 17% and adjusted operating margin expanding by 70 basis points [8][38] - FedEx Freight faced continued pressure, with average daily shipments declining due to weakness in the industrial economy [24] - U.S. Domestic package yield increased by 3%, while international export package yield grew by 4% [25][26] Market Data and Key Metrics Changes - International priority and economy freight revenue grew by 14% year over year [14] - U.S. Domestic average daily volume (ADV) increased by 5% year over year [21] - The industrial economy remains weak, impacting FedEx Freight's performance [24] Company Strategy and Development Direction - The company is focused on reducing structural costs and enhancing service quality through the Tricolor strategy and Network 2.0 [6][14] - A spin-off of FedEx Freight is on track for June 2026, aiming to create a separate public company with a strong customer value proposition [6][49] - The company is leveraging data and technology to enhance operational efficiency and customer experience, with a focus on AI and predictive analytics [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience despite global trade volatility and economic uncertainty [5] - The outlook for full-year adjusted earnings is projected to be between $17.2 and $19 per diluted share, reflecting a dynamic global operating environment [18][43] - Management remains optimistic about peak season growth, expecting modest increases in volume driven by larger B2C customers [28] Other Important Information - The company achieved $200 million in transformation-related savings during the quarter [7] - A 5.9% general rate increase is planned for January, with expectations of strong capture from pricing changes [27] - The company is enhancing its cybersecurity posture to protect strategic advantages [17] Q&A Session Summary Question: Clarification on EPS range - Management indicated that the EPS range is influenced by various factors including global trade evolution and domestic demand [52][54] Question: Understanding cost pressures - Management acknowledged significant headwinds from the global trade environment, impacting operating income [56][57] Question: Data strategy and revenue models - Management highlighted the importance of data and AI in creating new revenue models and enhancing operational efficiency [59][60] Question: Sequential earnings growth expectations - Management expects sequential earnings improvement in Q2 but did not provide specific guidance [67] Question: Clarification on global trade headwinds - Management explained that the majority of the headwind is due to reduced top-line revenue from the China lane [75][76] Question: Domestic volume outlook and competitive landscape - Management noted strong execution in the SMB segment and improvements in pricing, contributing to market share gains [85][88] Question: Customer reaction to de minimis rule expiration - Management reported that small exporters faced challenges due to the expiration, but the company is actively supporting them [103]

Financial Data and Key Metrics Changes - Revenue increased by 3% year over year, driven by strength in U.S. Domestic package services [7] - Adjusted operating income grew by 7% [7] - Adjusted earnings per share reached $3.83, up 6% year over year [39] - Adjusted operating margin expanded by 20 basis points [39] Business Line Data and Key Metrics Changes - Federal Express Corporation (FEC) revenue rose by 4% year over year, with adjusted operating income increasing by 17% [8][42] - FedEx Freight experienced continued pressure, with average daily shipments declining [26] - U.S. Domestic package yield increased by 3%, while international export package yield grew by 4% [27][28] Market Data and Key Metrics Changes - International export volumes declined, particularly on the China to U.S. lane [24] - The LTL market remains rational despite prolonged weakness in the industrial economy [9] - U.S. Domestic small business revenue grew by over 10% year over year [35] Company Strategy and Development Direction - The company is focused on reducing structural costs while advancing its Tricolor strategy and Network 2.0 [6] - A spin-off of FedEx Freight is on track for June 2026, aiming to create a separate public company [6][53] - The company is leveraging data and technology to enhance customer experience and operational efficiency [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience despite global trade volatility [5] - The outlook for full-year adjusted earnings is projected to be between $17.2 and $19 per diluted share [19][47] - Management remains focused on executing commercial priorities and dynamically matching capacity with demand [20] Other Important Information - The company achieved $200 million in transformation-related savings [7] - A new flight linking Dublin and Indianapolis is set to launch, supporting healthcare and high-value verticals [34] - The company plans to host its next Investor Day in February 2026 [21] Q&A Session Summary Question: Clarification on EPS range - Management indicated that the EPS range is influenced by various factors including global trade evolution and industrial economy health [56][58] Question: Incremental margin growth and headwinds - Management acknowledged the $1 billion headwind from the global trade environment, impacting operating income [60][62] Question: Data strategy and revenue models - The company emphasized the value of its data and AI capabilities, which are expected to create new revenue models [64][66] Question: Sequential earnings growth expectations - Management did not provide specific Q2 guidance but expressed cautious optimism for peak season demand [70][72] Question: Customer reaction to de minimis rule expiry - Management noted that the expiry has been challenging for small exporters, but they are actively supporting customers [107][108] Question: Peak season strength and market conditions - Management expects volume growth during peak season driven by new acquisitions and strong B2C demand [111][115]

Financial Performance - FedEx reported quarterly earnings of $3.83 per share, exceeding the Zacks Consensus Estimate of $3.65 per share, and up from $3.6 per share a year ago, representing an earnings surprise of +4.93% [1] - The company posted revenues of $22.24 billion for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 2.15%, compared to $21.58 billion in the same quarter last year [2] - Over the last four quarters, FedEx has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - FedEx shares have declined approximately 19.8% since the beginning of the year, while the S&P 500 has gained 12.2% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $4.04 for the coming quarter and $18.34 for the current fiscal year [4][7] Industry Context - The Transportation - Air Freight and Cargo industry, to which FedEx belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact FedEx's stock performance [5]

FedEx said it expects 4% to 6% revenue growth this fiscal year, above analysts' estimates as compiled by Visible Alpha. Its forecast for adjusted earnings per share, a range of $17.20 to $19, was roughly in line with projections at the midpoint. FedEx also said it's on track to reduce costs by $1 billion in fiscal 2026 and spin off its freight business by next June, The company logged stronger-than-expected results in its fiscal first quarter. It posted adjusted earnings per share of $3.83 on revenue that c ...