FedEx press releases or official SEC filings

FedEx Reports Q2 Earnings with Revenue at $22 Billion, Adjusted EPS at $4.05, and Announces Spin-Off of Freight Business Within 18 Months

Dec 19, 2024, 09:14 PM

FedEx Corp. (NYSE: FDX) announced its second-quarter earnings for fiscal 2025, reporting a revenue of $22 billion, slightly below analysts' expectations of $22.14 billion. The company also reported a diluted earnings per share (EPS) of $3.03 and an adjusted EPS of $4.05, surpassing the consensus estimate of $4.01. Following these results, FedEx revealed plans to spin off its freight division, FedEx Freight, into a separate publicly traded company within the next 18 months. This strategic decision aims to enhance operational focus and unlock shareholder value. The spin-off is part of CEO Raj Subramaniam's broader initiative to streamline the company's structure, which has faced challenges, including a decline in revenue and profit due to a soft industrial economy. FedEx's stock surged approximately 11% in after-hours trading following the announcements. The company also adjusted its full-year profit forecast, projecting non-GAAP EPS to be between $19.00 and $20.00.