Oct 30 (Reuters) - Shares of FedEx Freight surged 14% in early trading on Friday, with analysts backing the trucking firm's 2027 growth expectations after it forecast fourth-quarter profit above their estimates.
The stock, listed on June 1 after the company's spinoff from parent FedEx, is on track for its biggest-ever single-day jump and its first-ever monthly gain.
Here are some more details.
• Memphis-based FedEx Freight posted third-quarter adjusted profit and revenue above analysts' estimates and forecast
fourth-quarter profit above estimates on Thursday
• Fourth-quarter guideposts for key revenue drivers all appear to signal improvement from the third quarter and the first half of the year, Evercore ISI analysts said
• Jefferies said the results show that the company's ability to meet its medium-term targets is "becoming more achievable"
• FedEx Freight CFO Marshall Witt said the company's 2027 revenue growth would be in line with a 4%-6% medium-term target, while adjusted operating margin would progress towards its goal of 15%
• Witt also said some of the company's clients are bringing their suppliers along with them, highlighting potential for higher freight volume
• FedEx Freight's short-term earnings have taken a hit from FedEx separation costs and expenses tied to tech upgrades, but the company is working to improve yields in a bid to boost revenue
(Reporting by Nandan Mandayam in Bengaluru; Editing by Maju Samuel)
