FedEx Freight (NYSE:FDXF) Releases Earnings Results, Beats Expectations By $0.11 EPS

FedEx Freight (NYSE:FDXF) released its earnings results on Thursday. The company reported $1.49 EPS for the quarter, topping analysts’ consensus estimates of $1.38 by $0.11, Zacks reports. The company had revenue of $2.46 billion during the quarter.

Here are the key takeaways from FedEx Freight’s conference call:

• Strong initial standalone results: FedEx Freight generated $3.3 billion in revenue, up 9% year over year, and $510 million in adjusted operating income, up 16%, for the four-month transition period. Adjusted operating margin was 15.5%, with $239 million in free cash flow.
• Outlook raised for the fourth quarter: The company expects revenue of $2.3 billion to $2.37 billion and adjusted operating income of $185 million to $205 million, above its prior expectations. Higher fuel-related yield, improving pricing, and modest volume growth are expected to drive results.
• Pricing and commercial momentum are building: FedEx Freight has renewed approximately 25% of its contractual portfolio with its strongest renewal pricing performance in recent years, while a 6.9% general rate increase takes effect January 8. Management is also targeting higher-value verticals and underpenetrated small and medium-sized customers.
• Cash generation and technology investments support the long-term plan: The company reduced debt by $100 million, lowered gross leverage to 2.8 times, and remains on track for approximately 2.5 times leverage within 12 months of separation. A new Palantir alliance is intended to accelerate AI-driven productivity and network efficiency improvements.
• Near-term cost pressures remain: Adjusted results benefited from strong revenue and fuel trends but were offset by roughly $50 million of performance-based compensation and nearly $30 million of transition-service costs. TSA expenses are expected to remain around $7 million per month into the first half of 2027, while additional standalone and IT costs are weighing on GAAP results.

FedEx Freight Stock Up 15.8%

Shares of FDXF traded up $17.35 during mid-day trading on Friday, hitting $127.04. 2,036,900 shares of the company were exchanged, compared to its average volume of 1,631,691. FedEx Freight has a 1-year low of $103.47 and a 1-year high of $194.27. The firm’s 50 day simple moving average is $119.05.

Trending Headlines about FedEx Freight

Here are the key news stories impacting FedEx Freight this week:

• Positive Sentiment: FedEx Freight reported four-month transition-period adjusted earnings of $1.49 per share, above the $1.38 analyst consensus, on $2.46 billion in revenue. Higher freight yields and fuel surcharges supported revenue and profitability. FDXF Four-Month Transition Period Earnings Beat Estimates on Higher Yields
• Positive Sentiment: The company forecast fourth-quarter earnings above expectations, citing stabilizing or improving shipment volumes and stronger pricing. Management also expects pricing gains to offset relatively soft peak-season demand. FedEx Freight Forecasts Quarterly Earnings Above Estimates
• Positive Sentiment: FedEx Freight raised its transition-period earnings outlook, while its chief executive highlighted the strongest renewal pricing in years. Analysts subsequently supported the company’s growth targets, reinforcing the bullish reaction. FedEx Freight Shares Surge as Analysts Back Growth Targets
• Positive Sentiment: Management expects fourth-quarter revenue of approximately $2.30 billion to $2.37 billion and adjusted EPS of $0.65 to $0.75, with improving volumes and margins as key drivers. FedEx Freight Q4 Adjusted EPS Outlook

Analysts Set New Price Targets

A number of brokerages recently issued reports on FDXF. JPMorgan Chase & Co. reduced their target price on FedEx Freight from $160.00 to $149.00 and set an “overweight” rating for the company in a research note on Monday, October 5th. Stifel Nicolaus cut their price objective on FedEx Freight from $160.00 to $129.00 and set a “hold” rating on the stock in a report on Thursday, October 8th. BMO Capital Markets set a $130.00 target price on FedEx Freight in a report on Wednesday, October 7th. Weiss Ratings lowered FedEx Freight from a “sell (d+)” rating to a “sell (d)” rating in a research report on Tuesday, September 22nd. Finally, Citizens Jmp assumed coverage on shares of FedEx Freight in a research report on Wednesday, July 15th. They set a “market outperform” rating and a $190.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $158.85.

Institutional Investors Weigh In On FedEx Freight

A number of large investors have recently made changes to their positions in FDXF. Integrity Alliance LLC. boosted its position in shares of FedEx Freight by 17.6% in the 3rd quarter. Integrity Alliance LLC. now owns 3,453 shares of the company’s stock valued at $378,000 after purchasing an additional 518 shares during the period. Oregon Public Employees Retirement Fund grew its position in FedEx Freight by 10.0% during the 3rd quarter. Oregon Public Employees Retirement Fund now owns 14,676 shares of the company’s stock worth $1,605,000 after purchasing an additional 1,340 shares during the last quarter. First Nebraska Trust Co acquired a new position in FedEx Freight in the third quarter valued at $1,570,000. Mirae Asset Global Investments Co. Ltd. acquired a new position in FedEx Freight in the 3rd quarter valued at about $3,379,000. Finally, ProShare Advisors LLC raised its stake in FedEx Freight by 12.0% during the 3rd quarter. ProShare Advisors LLC now owns 19,220 shares of the company’s stock valued at $2,102,000 after acquiring an additional 2,056 shares during the last quarter.

FedEx Freight Company Profile

FedEx Freight is a less-than-truckload (LTL) freight transportation company that provides pickup, consolidation, transportation and delivery services for shipments that do not require a full truck. Its customers include businesses across manufacturing, retail, wholesale, healthcare, technology and other industries.

The company offers a range of LTL solutions, including time-definite and day-definite services, standard and economy freight transportation, expedited shipping, volume and multiweight services, and specialized delivery options.