BUZZ - FedEx shares fall as trucking costs squeeze profit margins

October 29 - ** Before the market opened on Thursday, FedEx (FDX.N) shares fell by 1.8% to $299. Although the company's third-quarter U.S. Express business profit exceeded expectations and it raised its full-year performance outlook, rising truck transportation costs continued to squeeze profit margins for the quarter (link)

** The profit margin of its U.S. Express business fell to 6.6% from 6.8% during the same period last year; the company expects that the increased cost of hiring truck drivers will have a more significant impact during the holiday peak season

** Third-quarter adjusted earnings per share rose by 28% to $3.74, exceeding the LSEG consensus estimate of $3.36; the company forecasts adjusted earnings per share of $18.00 to $18.60 for 2026, compared to analysts' expectations of $17.73 according to LSEG data

** JPMorgan analysts stated that although investors are digesting expectations for a weaker FedEx fourth-quarter profit outlook, its balance sheet still provides ample room for shareholder returns

** The stock has risen roughly 30.9% year-to-date, compared to a gain of 13.1% for the S&P 500 Index in the same period .SPX

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