FedEx Freight posts mixed results in first report

FedEx Freight Holding Co. offered mixed results in its first earnings report, pointing to transitional bumps as the company, the largest carrier of its kind in North America, learns to stand on its own. Revenue was $3.3 billion in the four months ending in September, it reported Oct. 29, an increase of 9.2% over the same period last year. Adjusted earnings per share decreased by 24% to $2.15 in the period. FedEx Freight, which was spun off from FedEx Corp. in June, will report earnings in three-month periods going forward. The company’s shares gained less than 1% in postmarket trading Oct. 29. They’d dropped 27% year to date. FDXF Quotes by TradingView See more transportation stock listings Revenue got a boost from new pricing power that the company didn’t have when it was under the umbrella of the parcel giant. “We were tied to the mother ship on pricing decisions,” FedEx Freight CEO John Smith said. “Now we are on our own, and we’re able to make sure that we’re getting paid for what we do.” FedEx Freight ranks No. 4 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 1 in the less-than-truckload segment. FedEx Corp. is No. 2 on the for-hire TT100, while FedEx Logistics ranks No. 40 on the TT Top 100 list of the largest logistics companies. Some technological ties to the parent company remain, however, driving up capital spending and weighing on profit. The freight company pays FedEx Corp. an average of $9 million per month for…

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