FedEx Freight (NYSE:FDXF) Shares Gap Up Following Earnings Beat

Key Points

• FedEx Freight shares jumped 13.4% after opening at $115.20 versus a prior close of $109.69, following quarterly adjusted EPS of $1.49 that beat the $1.38 consensus estimate. Revenue reached $2.46 billion, up 12% year over year.
• Management forecast fourth-quarter adjusted EPS of $0.65–$0.75 and revenue of $2.30–$2.37 billion, citing improving shipment volumes, pricing and potential margin expansion. However, projected revenue is below the latest quarter, and peak-season demand remains uncertain.
• Analyst sentiment is moderately bullish, with a consensus “Moderate Buy” rating and an average price target of $158.85, although some firms recently reduced their targets, including Stifel Nicolaus to $129 and JPMorgan to $149.

FedEx Freight Hldg Co (NYSE:FDXF - Get Free Report) shares gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $109.69, but opened at $115.20. FedEx Freight shares last traded at $124.5940, with a volume of 322,604 shares traded.

The company reported $1.49 EPS for the quarter, topping the consensus estimate of $1.38 by $0.11. The company had revenue of $2.46 billion during the quarter.

Key Stories Impacting FedEx Freight

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

• Positive Sentiment: FedEx Freight reported quarterly adjusted earnings per share of $1.49, exceeding the $1.38 analyst consensus, while revenue reached $2.46 billion. The company also posted 12% year-over-year revenue growth, providing evidence of resilient pricing and demand. FedEx posts 12% annual revenue growth in Q3
• Positive Sentiment: Management forecast fourth-quarter adjusted EPS of $0.65 to $0.75, reportedly above analyst expectations, citing stabilizing shipment volumes, improved pricing and anticipated margin expansion during the holiday period. FedEx Freight forecasts quarterly earnings above estimates
• Neutral Sentiment: The company expects fourth-quarter revenue of $2.30 billion to $2.37 billion. The range reflects improving volumes but also a still-uncertain freight market and limited visibility into peak-season demand. FedEx Freight fourth-quarter revenue outlook
• Negative Sentiment: Despite the earnings beat, coverage characterized the results as mixed: holiday-quarter volumes remain tepid, and projected revenue would be below the latest quarter. Investors may therefore be concerned that profit growth depends heavily on pricing, fuel surcharges and premium services rather than a broad volume recovery. FedEx Freight posts mixed results

Analysts Set New Price Targets

Several research firms have issued reports on FDXF. Stifel Nicolaus cut their price target on FedEx Freight from $160.00 to $129.00 and set a "hold" rating for the company in a report on Thursday, October 8th. Citizens Jmp started coverage on FedEx Freight in a research note on Wednesday, July 15th. They issued a "market outperform" rating and a $190.00 price target for the company. Stephens initiated coverage on FedEx Freight in a report on Wednesday, July 8th. They issued an "overweight" rating and a $180.00 target price on the stock. JPMorgan Chase & Co. lowered their price objective 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. Finally, Sanford C. Bernstein began coverage on FedEx Freight in a report on Thursday, September 10th. They set a "market perform" rating and a $133.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, FedEx Freight 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 hedge funds have recently modified their holdings of the company. Wedmont Private Capital lifted its holdings in shares of FedEx Freight by 8.4% in the 3rd quarter. Wedmont Private Capital now owns 2,020 shares of the company's stock worth $234,000 after acquiring an additional 156 shares during the last quarter. Choreo LLC increased its holdings in FedEx Freight by 2.6% in the 3rd quarter. Choreo LLC now owns 7,741 shares of the company's stock valued at $847,000 after purchasing an additional 194 shares during the last quarter. Quadrant Capital Group LLC raised its position in FedEx Freight by 5.8% in the third quarter. Quadrant Capital Group LLC now owns 4,254 shares of the company's stock valued at $468,000 after purchasing an additional 234 shares during the period. CoreCap Advisors LLC acquired a new position in FedEx Freight during the third quarter worth $26,000. Finally, Brookstone Capital Management raised its holdings in shares of FedEx Freight by 7.7% in the 3rd quarter. Brookstone Capital Management now owns 3,496 shares of the company's stock valued at $382,000 after buying an additional 249 shares during the period.

FedEx Freight Stock Up 13.4%

The stock's 50-day moving average price is $119.05.

About FedEx Freight

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.

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