FedEx Shares Surge 15% After Q4 Report and Announcing Strategic Alternatives for LTL Business

Jun 26, 2024 3:52 PM - Davit Kirakosyan

Image credit: FMP

FedEx Corporation (NYSE:FDX) experienced a significant rise of over 15% intra-day today after announcing it is exploring strategic alternatives for its less-than-truckload (LTL) business, and provided strong annual profit guidance.

The logistics company reported Q4 results that met analysts' expectations and provided guidance for fiscal year 2025 with an anticipated EPS range of $20 to $22.

The potential reassessment of FedEx's LTL division has garnered significant interest from investors. Jefferies estimates that the FedEx Freight segment could be valued at approximately $30 billion.

In other recent developments, FedEx has reported noteworthy financial performance. The company's EPS for Q4 was $5.41, slightly exceeding analysts' expectations due to stronger-than-expected performance in the Freight segment and a marginally higher Ground margin. Additionally, FedEx's fiscal 2025 EPS guidance of $20 to $22 surpassed Wall Street forecasts.

To further enhance profitability, FedEx announced plans to cut between 1,700 and 2,000 jobs in Europe over the next 18 months. This reduction is projected to save the company between $125 million and $175 million annually, starting in fiscal 2027.

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