What's Going On With FedEx Stock Friday?

FedEx Corporation FDX stock is trading slightly higher on Friday after the company reported second-quarter earnings on Thursday after the bell and announced plans to separate FedEx Freight. Here’s what you need to know.

FedEx reported adjusted earnings per share of $4.05, beating analyst estimates of $3.91. In addition, the company reported sales of $22 billion, missing analyst estimates of $22.11 billion.

The company also announced plans to separate FedEx Freight and create a second publicly traded company. FedEx plans to execute this separation within the next 18 months.

The company believes the separation will enable more customized operational execution and allow for more focused investment and capital strategies to better meet the specific needs of both global parcel delivery and Less Than Truckload freight markets. It will also maintain the strategic benefits of working together on key commercial, operational and technology initiatives.

Analyst Changes: Following the earnings report, several analysts issued price target adjustments.

• Loop Capital analyst Rick Paterson upgraded FedEx from a Hold rating to a Buy rating and raised the price target from $288 to $365.
• Wells Fargo analyst Christian Wetherbee maintained an Equal-Weight rating on FedEx and raised the price target from $305 to $320.
• UBS analyst Thomas Wadewitz maintained a Buy rating on FedEx and raised the price target from $311 to $350.
• Stifel analyst J. Bruce Chan maintained a Buy rating on FedEx and raised the price target from $321 to $368.

The company revised its outlook for the 2025 fiscal-year, now expecting nearly flat revenue year over year, compared to its previous expectation of a low single-digit percentage increase. FedEx forecasts adjusted earnings per share of $16.45 to $17.45, compared to its prior guidance of $17.90 to $18.90.

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FDX Price Action: At the time of writing, FedEx stock is trading 1.1% higher at $278.92, according to data from Benzinga Pro.

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