FedEx Freight Holding Company Inc. (NYSE:FDXF) received renewed support from Bank of America (BofA) following its first earnings report as a standalone company, with the brokerage reiterating its Buy rating and raising its price forecast to $187 from $185.
Analyst Ken Hoexter said the less-than-truckload carrier delivered fiscal fourth-quarter adjusted operating income above expectations, driven by stronger pricing, higher revenue per shipment and increased weight per shipment.
Revenue rose 5% year over year to $2.41 billion, while adjusted operating income reached $363 million, topping the firm’s forecast by $27 million.
Transition Outlook Improves
FedEx Freight also introduced financial targets for its June-to-December 2026 transition period, projecting revenue growth of 4% to 6%, adjusted operating income of $605 million to $645 million, adjusted operating margins of 11.5% to 12.0%, and adjusted earnings of $2.40 to $2.60 per share. Hoexter raised his estimates to reflect the stronger outlook.
