--- title: "FedEx shares jump after parcel giant says it will spin off freight division" description: "FedEx shares rose over 7% in premarket trading after the company announced plans to spin off its freight division, creating two independent public companies. CEO Raj Subramaniam stated the separation " type: "news" locale: "en" url: "https://longbridge.com/en/news/222927231.md" published_at: "2024-12-20T12:00:34.000Z" --- # FedEx shares jump after parcel giant says it will spin off freight division > FedEx shares rose over 7% in premarket trading after the company announced plans to spin off its freight division, creating two independent public companies. CEO Raj Subramaniam stated the separation is timely due to LTL market dynamics and aims to be tax-efficient for shareholders, expected within 18 months. Analysts from Raymond James and Loop Capital upgraded FedEx's stock ratings and price targets, viewing the spin-off as a value-unlocking event. FedEx reported Q2 earnings matching estimates but missed revenue expectations, while ongoing restructuring efforts continue. Investing.com -- FedEx Corporation (NYSE:FDX) saw its shares jump more than 7% in premarket trading Friday after the company announced plans to spin off its less-than-truckload freight division. FedEx intends to carry out the spinoff through a capital markets transaction, creating two independent, industry-leading public companies. As two industry-leading public companies, FedEx and FedEx Freight will continue to pursue their growth strategies, the company added. “This is the right time to pursue a separation as we respond to the unique dynamics of the LTL market,” said CEO Raj Subramaniam. The company stated the separation is expected to be executed in a tax-efficient manner for FedEx stockholders and completed within the next 18 months. Raymond (NS:RYMD) James analysts believe the spin-off "should serve as a value-unlocking event and will put more scrutiny on the operations of the Freight segment." The firm lifted its target price on FedEx shares to $320 from $305. Meanwhile, Loop Capital upgraded FedEx stock to Buy from Hold following the announcement and raised the price target to $365 from $288. The moves come "in reaction to this value creating spin and recent pullback in the stock price," Loop analysts noted. The parcel delivery giant reported second-quarter earnings of $4.05 per share, matching Wall Street estimates, and up slightly from $3.99 per share a year ago. However, revenue for the quarter totaled $22 billion, falling short of the consensus estimate of $22.17 billion. FedEx provided guidance for fiscal 2025 adjusted earnings per share in the range of $19.00 to $20.00, compared with the analyst consensus of $19.75. TheMemphis-based delivery company has been going through a complex restructuring, which involves aggressive cost cutting. It said the permanent cost reductions from the DRIVE transformation program was of $2.2 billion. Shares of rival UPS were also up nearly 1%. *Pratyush Thakur contributed to this report.* This content was originally published on Investing.com ### Related Stocks - [FDX.US - FedEx](https://longbridge.com/en/quote/FDX.US.md) - [LOOP.US - Loop Industries](https://longbridge.com/en/quote/LOOP.US.md) - [WING.US - Wingstop](https://longbridge.com/en/quote/WING.US.md) - [LTL.US - ProShares Ultra Communication Services](https://longbridge.com/en/quote/LTL.US.md) - [ING.US - ING Groep](https://longbridge.com/en/quote/ING.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 聪明资金在联邦快递期权上进行大额押注 | 金融巨头对联邦快递（NYSE:FDX）持乐观态度，最近的期权交易中有 44% 的交易者表现出乐观情绪。分析显示有 18 笔异常交易，总价值为 110 万美元。联邦快递的预测价格区间为 240.0 美元至 500.0 美元。目前，FDX 的价 | [Link](https://longbridge.com/en/news/276477340.md) | | 阿达尼企业与联邦快递将在新孟买机场合作开发一个全自动航空货运枢纽，计划长期投资超过 250 亿卢比 | 阿达尼企业 - 联邦快递将在纳维孟拜机场开发全自动化空货运中心，长期投资超过 250 亿印度卢比 | [Link](https://longbridge.com/en/news/276218410.md) | | 特朗普暗示违法征收的关税不退了，美财长称今年关税收入将 “基本保持不变” | 美国总统特朗普暗示不会退还被最高法院裁定违法的关税，预计 2026 年关税收入将保持不变。特朗普计划签署行政令，对全球商品加征 10% 进口关税，取代被推翻的关税。财长贝森特表示，政府将利用替代法律权力维持关税收入，强调国家安全和财政收入不 | [Link](https://longbridge.com/en/news/276494362.md) | | 美财政部让步，拟修订主权财富基金税收提案，此前遭私募业警告 | 美国财政部正就一项针对主权财富基金和公共养老基金征税方式进行全面改革的提案作出让步。相关提案此前由美国国税局提出，拟更新税法第 892 条，将这些基金持有的多数美国债务投资归为商业活动，这将令其面临被征税的风险。此前，私募信贷和私募股权公司 | [Link](https://longbridge.com/en/news/276491732.md) | | 都想学英伟达 “芯片换融资”，谷歌和 AMD 都要扶持 “AI 云” | 谷歌正试图复制英伟达的成功路径，利用金融实力构建芯片生态系统。公司正洽谈向 “新型云” 公司 Fluidstack 注资约 1 亿美元，并为 Hut 8 等转型矿企提供项目融资支持，以换取 TPU 芯片的采用。AMD 则更为激进，为初创公司 | [Link](https://longbridge.com/en/news/276502552.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.