FedEx Freight shares surge as analysts back growth targets after quarterly beat
FDXF•FedEx Freight shares rose 14% in early trading after the company reported third-quarter adjusted profit and revenue above estimates and forecast fourth-quarter profit above estimates. Analysts said its 2027 growth targets were becoming more achievable; the company targets 4%-6% revenue growth and a 15% adjusted operating margin.
1. Quarterly results and outlook
FedEx Freight reported third-quarter adjusted profit and revenue above analysts’ estimates and forecast fourth-quarter profit above estimates. Its shares surged 14% in early trading on Friday, putting them on track for their biggest-ever single-day jump and first-ever monthly gain.
2. Targets and growth drivers
CFO Marshall Witt said 2027 revenue growth would be in line with the company’s 4%-6% medium-term target, while adjusted operating margin would progress toward its 15% goal. Evercore ISI analysts said fourth-quarter guideposts for key revenue drivers appeared to signal improvement from the third quarter and first half of the year; Jefferies said the results made the medium-term targets “becoming more achievable.” Witt said some clients are bringing suppliers along with them, which could support higher freight volume. Separation costs and technology-upgrade expenses have weighed on short-term earnings, while the company is working to improve yields.
