FedEx Freight, which spun off from FedEx on June 1, beat analyst expectations for revenue in its first earnings report as a standalone company.

The stock was basically flat in after hours trading and has fallen about 1% since it debuted on the New York Stock exchange less than a month ago. It was trading at $158.50 in after-hours trading.

Its fourth-quarter revenue came in at $2.4 billion, ahead of analyst estimates just shy of $2.3 billion. That pushed its full-year revenue to $8.8 billion, also ahead of expectations of $8.7 billion.

While the company didn't provide net income, its adjusted operating income of $363 million for the quarter came in well ahead of analyst estimates of $333 million.

FedEx Freight focuses on less-than-truckload $(LTL)$ deliveries to industrial customers that don't need a full truck to send items short distances. FedEx shareholders got one share of FedEx Freight for every two shares of FedEx they held before the spinoff.

Last quarter, FedEx Freight had adjusted earnings per share of 38 cents on revenue of $1.99 billion.

As with FedEx, FedEx Freight is switching to a calendar year reporting schedule going forward. In its guidance for the seven months ending in December, it is expecting adjusted operating income of $600 million and adjusted earnings per share of $1.75 to $1.95 per share or $2.40 to $2.60 per share with additional adjustments for spinoff costs and income-tax effects.

In reporting earnings, CEO John Smith said that company was "moving forward with a clear strategy focused on profitable growth and service differentiation."

Write to Anita Hamilton at anita.hamilton@barrons.com

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(END) Dow Jones Newswires

June 25, 2026 17:41 ET (21:41 GMT)

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