FedEx Freight forecasts quarterly earnings above estimates on improving volumes, pricing
FDXF•FedEx Freight forecast fourth-quarter adjusted earnings of 65 to 75 cents per share, above analysts’ 53-cent estimate, citing improving volumes. It reported quarterly adjusted earnings of $1.49 per share and revenue of $2.44 billion, both above estimates.
1. Quarterly results
FedEx Freight reported adjusted profit of $1.49 per share for the quarter ended September 30, down from $2.10 a year earlier. Revenue rose 8% to $2.44 billion, helped by better yields and fuel surcharges; analysts had expected $1.36 per share and $2.37 billion in revenue. The profit decline was tied largely to separation costs and higher fuel prices.
2. Fourth-quarter outlook
The company expects fourth-quarter adjusted profit of 65 to 75 cents per share, compared with analysts’ expectation of 53 cents. It forecast revenue for the seven months to December of $5.58 billion to $5.65 billion, up 4% to 6% from a year earlier.
3. Freight market
US shippers paid the most to move freight since 2021 in the third quarter, and spending rose 32.1% from a year earlier, the US Bank Freight Payment Index showed. FedEx Freight has focused on cost cuts, higher-priced freight and stabilizing volumes since its June spinoff from FedEx.
