Parcel and freight delivery company FedEx (FDX) reported a fiscal fourth-quarter earnings beat on Tuesday, posting in-line revenue of $21.1 billion and adjusted earnings of $5.41 per share (expected $5.34 per share). FedEx’s stock is moving higher in pre-market trading — and into Wednesday’s regular session — off of its full-year 2025 guidance and announcing a $2.5 billion share buyback plan.
CFRA Research Energy Equity Analyst and Deputy Research Director Stewart Glickman comments on the possibility of a FedEx Freight spinoff — hinted at by the company — and the FedEx’s operating margins.
"Transports have struggled, and I think one of the concerns that’s affected this space is volumes [which] have really struggled to make any kind of traction. In the US business that continues to be a little bit of the case, where… FedEx’s guidance for next year, revenue growth is only supposed to be… low to mid single-digit growth," Glickman tells the Morning Brief. "So we’re not talking about a looming broad macro recovery."
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