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FedEx Freight forecasts modest growth after spin‑off

Wall Street Journal US Business •
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FedEx Freight, now a standalone public company after its June 1 spin‑off, issued its first revenue outlook. Management sees sales climbing 4% to 6% between June 1 and Dec. 31 versus the same period last year, when the unit remained inside FedEx. The guidance signals confidence that the less‑than‑truckload segment can sustain growth independent of the parcel business.

Analysts note that the split lets FedEx focus on express and ground parcels, mirroring UPS’s streamlined model, while FedEx Freight concentrates on consolidating smaller shipments onto single trailers. The carrier’s earnings forecast ranges from $1.75 to $1.95 per share before retirement‑plan adjustments, or $2.40 to $2.60 after excluding spin‑off costs for the seven‑month period.

The revenue and EPS outlook gives investors a benchmark for performance as the company builds its balance sheet separate from FedEx’s parcel empire. With modest top‑line growth and adjusted earnings near $2.50, FedEx Freight aims to prove that the LTL niche can deliver steady returns without relying on the larger carrier’s network.

Wall Street has already priced some of the separation, but the explicit guidance may shift sentiment. If FedEx Freight meets the mid‑point of its range, revenue would rise roughly $200 million, bolstering cash flow and supporting dividend considerations. The company’s performance will likely influence how investors evaluate other logistics spin‑offs in a tightening freight market.