Core Viewpoint - FedEx is collaborating with Boeing and U.S. aircraft safety regulators to return the MD-11 cargo planes to service by May 31 after grounding them following a fatal crash involving one of the jets [1] Group 1 - FedEx is working with Boeing and U.S. regulators to address safety concerns related to the MD-11 cargo planes [1] - The MD-11 cargo planes were grounded due to a deadly incident, highlighting the importance of safety in the aviation industry [1] - The target date for returning the grounded MD-11 aircraft to service is set for May 31 [1]

Core Viewpoint - FedEx is expected to report a decline in earnings per share while showing revenue growth in its upcoming earnings release, indicating mixed performance in the financial outlook. Financial Performance - FedEx is projected to report earnings of $4.06 per share, representing a year-over-year decline of 9.98% [2] - Revenue is estimated at $23.46 billion, reflecting a year-over-year increase of 5.89% [2] - For the entire fiscal year, earnings are projected at $18.38 per share and revenue at $92.6 billion, indicating changes of +1.04% and +5.32% respectively from the prior year [3] Analyst Estimates - Recent modifications to analyst estimates for FedEx indicate changing business trends, with upward revisions suggesting positive sentiment towards the company's operations [4] - The Zacks Consensus EPS estimate has shifted 0.69% downward over the past month, and FedEx currently holds a Zacks Rank of 3 (Hold) [6] Valuation Metrics - FedEx has a Forward P/E ratio of 16.56, which is in line with the industry average [7] - The company has a PEG ratio of 1.53, compared to the industry average PEG ratio of 1.87 [8] Industry Position - The Transportation - Air Freight and Cargo industry holds a Zacks Industry Rank of 99, placing it in the top 41% of all industries [9]

MEMPHIS, Tenn.--(BUSINESS WIRE)--FedEx Corp. (NYSE: FDX) ("FedEx†) announced today that FedEx Freight Holding Company, Inc., a wholly owned subsidiary of FedEx (the "Issuer†), has priced a private offering of $1,000,000,000 aggregate principal amount of 4.300% senior notes due 2029, $1,000,000,000 aggregate principal amount of 4.650% senior notes due 2031, $700,000,000 aggregate principal amount of 4.950% senior notes due 2033 and $1,000,000,000 aggregate principal amount of 5.250% senior notes. ...

Core Insights - FedEx Corp. has appointed Scott Ray as the new Chief Operating Officer for U.S. and Canada Surface Operations, effective June 1, with a transition period starting February 1 [1][2] - Ray will oversee all aspects of Surface Operations, focusing on daily package delivery and the execution of strategic initiatives like Network 2.0 [2][4] - With 39 years of experience at FedEx, Ray has previously served as president of Surface Operations and has led significant transformation efforts within the company [3][4] Leadership Transition - Scott Ray succeeds John Smith, who will become CEO of FedEx Freight on June 1 [1] - The leadership team of Surface Operations will report directly to Ray, and there are no plans to fill the president of Surface Operations position [4] Company Overview - FedEx Corp. generates annual revenue of $90 billion and offers a wide range of transportation, e-commerce, and business services [5] - The company is committed to achieving carbon-neutral operations by 2040 and emphasizes safety and ethical standards among its workforce of over 500,000 employees [5]

Winter Storm Fern swarmed much of the continental U.S. Sunday, with heavy snowfall and freezing temperatures leaving hundreds of thousands without power and throwing a wrench in freight and delivery operations across the Midwestern, Southern and Northeastern parts of the country. Major logistics operators including UPS, FedEx and the U.S. Postal Service (USPS) all issued delivery delay warnings ahead of the snowfall, with UPS forced to suspend operations at its Worldport air hub in Louisville, Ky. Sunday. ...

Core Viewpoint - FedEx has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, driven by institutional investors who adjust their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to a higher fair value for a stock, prompting institutional investors to buy or sell, which subsequently affects the stock price [4]. FedEx's Earnings Outlook - For the fiscal year ending May 2026, FedEx is projected to earn $18.38 per share, with a 2.5% increase in the Zacks Consensus Estimate over the past three months [8]. - The upgrade to Zacks Rank 2 positions FedEx in the top 20% of Zacks-covered stocks, suggesting a strong potential for stock price appreciation in the near term [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, while the next 15% receive a "Buy" rating [9].

Core Viewpoint - FedEx Freight, the LTL spinoff of FedEx, will launch with a debt rating of BBB-, one notch lower than its parent company's BBB rating, indicating it is still within the investment-grade category [1][5]. Debt Ratings - S&P Global Ratings assigned a BBB- rating to FedEx Freight, while Moody's has rated FedEx at Baa2, equivalent to S&P's BBB rating. As of now, Moody's has not rated FedEx Freight's debt [1][2]. - XPO, a competitor, has lower ratings at Ba2 from Moody's and BB from S&P, both of which are non-investment grade, indicating FedEx Freight's stronger position in the market [2]. Financial Structure - FedEx Freight will have a significant debt load, including a $4.3 billion dividend payment to FedEx. It plans to issue a $600 million unsecured delayed draw term loan and has an estimated $3.7 billion in other unsecured debt for this payment [4]. - Additionally, FedEx Freight has secured a $1.2 billion revolving credit facility, which will not be utilized until the spinoff is finalized [4]. Spinoff Timeline and Outlook - The spinoff is scheduled for June 1, and the BBB- rating comes with a stable outlook, suggesting no immediate changes in rating are expected [5]. - S&P anticipates that FedEx Freight will maintain funds from operations (FFO) to debt above 20%, driven by increased average daily shipments and revenue growth [6]. Competitive Position - FedEx Freight boasts approximately 26,000 doors, the largest in the LTL industry, and covers about 98% of all U.S. zip codes, providing a competitive advantage over regional operators [7]. - In terms of revenue, FedEx Freight reported about $2.2 billion for the quarter ending November 30, significantly higher than Old Dominion's revenue of approximately $1.4 billion for the quarter ending September 30 [6].

Core Viewpoint - FedEx Corp. has initiated a private offering of senior notes through its subsidiary, FedEx Freight Holding Company, as part of the financing for the proposed spin-off of the Issuer from FedEx, which will focus on less-than-truckload (LTL) freight transportation [1] Group 1 - The private offering of senior notes is being conducted by FedEx Freight Holding Company, Inc., a wholly owned subsidiary of FedEx [1] - The proceeds from the notes will be used to finance the separation of the Issuer from FedEx [1] - The spin-off will enable the Issuer to own and operate FedEx's LTL freight transportation through its subsidiaries [1]

Core Insights - FedEx plans to cut up to 500 jobs as part of a significant restructuring of its domestic operations in the country [1] - The company intends to invest approximately 78 million euros, equivalent to $91.58 million, in this overhaul [1] Company Actions - Job Cuts: FedEx is set to reduce its workforce by up to 500 positions [1] - Investment: The company will allocate up to 78 million euros ($91.58 million) for the restructuring efforts [1]

Industry Overview - The Zacks Transportation-Air Freight and Cargo industry is facing ongoing supply-chain disruptions and a challenging macroeconomic environment characterized by high inflation and interest rates, leading to a decline in package volumes [1][6] - Companies in this industry provide air delivery and freight services, with many offering specialized transportation and logistics solutions, directly correlating their performance with the overall health of the economy [3] Key Trends - Despite challenges, there are growth opportunities for companies focusing on operational efficiency and cost-cutting measures, with firms like UPS, FedEx, and GXO Logistics capitalizing on these trends [2] - The industry is prioritizing shareholder returns, with companies increasing dividends and buybacks to enhance shareholder value; FedEx announced a 5.1% increase in its quarterly dividend for 2025 [4] - Cost-cutting initiatives are crucial as the industry faces elevated inflation levels, particularly in labor, freight, and fuel costs; FedEx reported better-than-expected results in Q2 of fiscal 2026 due to these efforts [5] Demand and E-commerce - A slowdown in shipping demand, especially in Asia and Europe, is a significant concern, with geopolitical uncertainty and high inflation negatively impacting consumer sentiment [6] - E-commerce continues to be a strong growth driver, supported by the convenience of online shopping and the ongoing digital transformation, despite a slowdown from pandemic peak levels [7] Industry Performance and Valuation - The Zacks Air Freight and Cargo industry holds a Zacks Industry Rank of 97, placing it in the top 40% of 244 Zacks industries, indicating positive near-term prospects [8] - The industry's earnings estimate for 2026 has increased by 1.5% since November 2025, reflecting growing analyst confidence in earnings growth potential [9] - Over the past year, the industry has underperformed the S&P 500, declining by 6.3% compared to the S&P 500's growth of 14.9% [11] - The industry is currently trading at a trailing 12-month EV/EBITDA of 9.8X, lower than the S&P 500's 18.8X and the sector's 10.79X [14] Company Highlights - UPS is recognized for its shareholder-friendly activities, including dividends and buybacks, and has shown strong free cash flow generation, supporting its bottom line and e-commerce demand [17][18] - FedEx is noted for its solid liquidity position and cost-cutting measures, with earnings surpassing consensus estimates in three of the last four quarters [21] - GXO Logistics has consistently exceeded earnings estimates, benefiting from increased e-commerce and logistics capabilities, with shares rising by 26% over the past year [23][26]