FedEx Freight stock price surges as analysts back its growth targets following stronger-than-expected quarterly results

Reuters, October 30 - FedEx Freight (FDXF.N) shares soared 14% in early trading on Friday after the company projected fourth-quarter profit (link) above analysts’ estimates, with analysts voicing support for the freight company's 2027 growth outlook.

The stock, which was spun off from parent company FedEx on June 1, is now poised to notch its biggest one-day gain ever and its first monthly gain on record.

Here are more details.

• FedEx Freight, based in Memphis, posted third-quarter adjusted profit and revenue on Thursday that beat analysts' expectations, and forecast fourth-quarter profit above estimates

• Evercore ISI analysts said guidance for key revenue drivers in the fourth quarter showed improvement compared to the third quarter and the first half

• Jefferies said the results indicated the company’s ability to achieve medium-term targets “is becoming more tangible”

• FedEx Freight CFO Marshall Witt said the company's 2027 revenue growth would meet the 4%-6% medium-term target, while the adjusted operating margin would steadily progress toward the 15% goal

• Witt also said some customers are bringing their suppliers with them, highlighting potential for freight volume growth

• FedEx Freight's short-term profits have been hit by spin-off costs from FedEx and spending related to technology upgrades, but the company is working to improve yield to boost revenue

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