FedEx Freight on Thursday night took a positive step forward in its young journey as a standalone public company.
In its first official earnings report since being spun off in June, the less-than-truckload shipping provider delivered a top and bottom line beat and offered encouraging commentary on its self-help improvements
Revenue in the three months ended in September rose 8% to $2.44 billion, beating the LSEG consensus of $2.33 billion. Adjusted earnings per share (EPS) totaled $1.49, exceeding the consensus of $1.36, LSEG data showed. Bottom line Shares rose about 3% in extended trading, a welcome market reaction considering how badly the stock has struggled.
After a decent debut in June, FedEx Freight has been drifting lower, seemingly with no end. Anytime a stock is spun off, there can be an adjustment period as investors who received shares due to ownership in its former parent decide to dump it. Plus, elevated fuel prices have weighed on stocks across the transportation industry, complicating matters for FDXF shares.