From Financial Modeling Prep: 2024-12-20 08:44:00

FedEx (NYSE:FDX) saw shares surge over 7% in pre-market trading after announcing plans to spin off its LTL freight division. The move aims to create two independent companies to focus on unique growth opportunities. The separation is expected to be completed within 18 months.

The spinoff will allow FedEx Freight to address LTL challenges, while enabling FedEx to focus on core delivery operations. Second-quarter earnings were $4.05 per share, meeting expectations but falling short on revenue at $22 billion. Fiscal 2025 earnings guidance predicts $19.00 to $20.00 per share.

FedEx’s DRIVE transformation program has resulted in $2.2 billion in cost reductions, emphasizing efficiency and financial discipline. The company remains committed to improving profitability through ongoing restructuring efforts to adapt to market conditions and create long-term shareholder value.



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