Sources
Loading...
Additional media
Loading...
DeepNewz, mobile.
People-sourced. AI-powered. Unbiased News.
FedEx Corporation reported strong earnings of $4.05 per share, surpassing analysts' estimates, prompting Bank of America analyst Ken Hoexter to raise the company's target price to $348. Following the announcement of a spinoff of its less-than-truckload unit, FedEx shares rose by 0.6% on Friday morning. FedEx President and CEO Raj Subramaniam stated during an earnings call that operations for shippers using FedEx Freight would continue as usual despite the spinoff. Moody's indicated that the spinoff would not affect FedEx's investment grade credit rating, although the full impact would depend on the capital structure established for FedEx Freight and the use of any cash distributed back to FedEx. Subramaniam emphasized that the separation is timely in response to the unique dynamics of the less-than-truckload market.
“This is the right time to pursue a separation as we respond to the unique dynamics of the LTL market,” @FedEx CEO Raj Subramaniam said. https://t.co/OVuzfJgV9F
Spinoff of FedEx Freight by $FDX won't impact the parent company's $MCO Baa2 investment grade credit rating. But Moody's said this: "(Full) effects..will depend on the ultimate capital structure established for FedEx Freight and how any cash distributed back to FedEx is used." https://t.co/WIHI28KAxO
FedEx ( $FDX): Shares of the transportation and delivery service rose 0.6% Friday morning following an upgrade from Hold to Buy from Loop Capital as Wall Street appeared to cheer on plans for the company to spin off its Freight division. The proposal would see the creation of a… https://t.co/ZETsflMqqc
