FEDEX announced the much-anticipated spinoff of its freight trucking division on Thursday, as it restructures operations to focus on its core delivery business.
Shares jumped 8 percent in after-hours trading, adding $5 billion to FedEx's market capitalization.Analysts believe the spinoff could unlock up to $20 billion in shareholder value, while clearing the way for FedEx management to zero in on merging operations of its separate Express and Ground units to boost profits.
As a result, Memphis-based FedEx lowered its profit outlook for the full year ending May 2025, calling for adjusted profit of $19 to $20 per share. In September, FedEx cut the top end of its full-year adjusted operating income to between $20 and $21 per share from its previous range of $20 to $22 per share.FedEx second-quarter adjusted profit fell to $0.99 billion, or $4.05 per share, from $1.01 billion, or $3.99 per share, a year earlier.
To Spin Off Freight Trucking Business
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