Latest news with #FedExFreight
Yahoo
20-05-2025
- Business
- Yahoo
FedEx taps leaders from within for LTL spinoff, to Wall Street's dismay
FedEx Corp. has announced some of the new leaders for its less-than-truckload unit that is expected to be spun off into a new publicly traded company by June 2026. John Smith, who is currently the chief operating officer of Federal Express (U.S. and Canada) will become president and CEO at the nation's largest LTL carrier, FedEx Freight. Smith logged 25 years of service at FedEx Freight, serving as president and CEO from 2018 until 2021. Smith will remain in his current role, which oversees leadership at FedEx Freight and the U.S. and Canada ground operations of Federal Express, until the separation occurs. FedEx Corp. (NYSE: FDX) Vice Chairman Brad Martin will become the chairman of FedEx Freight. Martin is credited with leading the board's strategic review of separating the LTL unit into a stand-alone is also expected to remain on FedEx's board following the spinoff. 'I cannot think of two individuals with more knowledge of, or commitment to, the long-term success of the FedEx Freight business than John Smith and Brad Martin,' said FedEx Corp. President and CEO Raj Subramaniam in a Monday news release. 'Together they have the track record and expertise to successfully lead this new and exciting chapter for the independent FedEx Freight company.' The consolidated FedEx enterprise continues to be overhauled through various initiatives that are expected to deliver $4 billion in cost savings. FedEx Freight has been working to improve freight mix, which includes heavier shipment weights and better density across the network. It has also been onboarding sales staff in recent months to drive the changes. The company tapped Tom Connolly at the end of last year to be vice president of LTL sales. Connolly has been at FedEx for nearly 30 has made other recent moves ahead of the spin. It created a separation management office and a transition team. It also completed a $16 billion debt exchange to facilitate the split. Wall Street analysts, however, said the news may not be well received by investors. Deutsche Bank's (NYSE: DB) Richa Harnain acknowledged the success Smith has had at FedEx Freight and at its Express unit but said the move may create a leadership void at the remaining FedEx entity as it is 'undergoing the largest transformation of its history with the combination of Express and Ground.' She also said investors were mostly hoping FedEx would pluck talent away from an established competitor. 'The popular preference we heard among the investment community [was] that FedEx Freight leadership be an experienced executive outside the organization,' Harnain said. Morgan Stanley's (NYSE: MS) Ravi Shanker voiced a similar sentiment, saying the move 'is more evidence that FDX LTL will be 'more of the same' rather than transformational change.' 'We expect FDX stock to come under pressure following the announcement of new leadership at the LTL SpinCo. While announced CEO John Smith has plenty of experience, we believe investors were singularly focused on external leadership (preferably from a market leader like [Old Dominion Freight Line]) as a key catalyst for the spin,' Shanker said in a note to clients. FedEx announced in January that its president of LTL at the time, Lance Moll, was retiring after 33 years with the Freight has approximately 360 terminals generating roughly $9 billion in revenue annually. Shares of FDX were off 1.9% ahead of the market open on Tuesday. More FreightWaves articles by Todd Maiden: April sees mixed freight trends on path to recovery Pamt Corp. CEO resigns for family reasons amid mounting losses Insurance costs, fraud and cargo theft hit Landstar's Q1 The post FedEx taps leaders from within for LTL spinoff, to Wall Street's dismay appeared first on FreightWaves. Sign in to access your portfolio
Reuters
19-05-2025
- Business
- Reuters
FedEx appoints insider John Smith to lead freight spin-off business
May 19 (Reuters) - Delivery giant FedEx (FDX.N), opens new tab said on Monday it has appointed insider John Smith as CEO of its freight trucking spinoff, FedEx Freight. Smith, who is the chief operating officer of the company's U.S. and Canada business, has been with the company for more than 25 years. The company first announced the separation of its less-than-truckload (LTL) business in December 2024 as it restructured to focus on its core business. The move would allow for more customized operational execution in the global parcel and LTL markets, it said. The divestiture is expected to be completed by June 2026. Until then, Smith will serve in his current role.
Yahoo
19-05-2025
- Business
- Yahoo
FedEx Announces Leadership for Independent FedEx Freight Company Upon Separation
John A. Smith named President and CEO; R. Brad Martin to serve as Chairman of the Board. MEMPHIS, Tenn., May 19, 2025--(BUSINESS WIRE)--FedEx Corp. (NYSE: FDX) announced today several leadership roles as the company makes progress to separate its less-than-truckload (LTL) freight division. John A. Smith, chief operating officer, U.S. and Canada, of Federal Express, has been selected to serve as the president and CEO of FedEx Freight, and R. Brad Martin, vice chairman of the FedEx Corp. board of directors, has agreed to serve as chairman of the board of FedEx Freight. Both appointments will be effective upon completion of the previously announced separation of FedEx Freight from FedEx Corp. Plans for the spin-off, which is expected to occur by June 2026, remain on track. "I cannot think of two individuals with more knowledge of, or commitment to, the long-term success of the FedEx Freight business than John Smith and Brad Martin," said Raj Subramaniam, president and CEO of FedEx Corp. "Together they have the track record and expertise to successfully lead this new and exciting chapter for the independent FedEx Freight company." Prior to the separation, Smith will continue in his current role, which includes leadership of the FedEx Freight business in addition to U.S. and Canada ground operations of Federal Express. He has been a member of the FedEx Freight team (and its predecessor companies) for 25 years of his more than 30 years in the industry. From 2018 until 2021, as president and CEO of the FedEx Freight business, Smith successfully grew the company's revenue and operating income while safely navigating the team through the challenging dynamics associated with the pandemic. Martin chairs the FedEx Corp. Audit and Finance Committee and led the board's strategic analysis of the FedEx Freight business that resulted in the separation decision. It is expected that he will remain on the FedEx Corp. board of directors while also serving as chairman of the board of the new FedEx Freight entity. The company previously appointed Tom Connolly as vice president of LTL Sales. With more than 30 years of industry experience, Connolly is leading the expansion of FedEx Freight's dedicated LTL salesforce. Additional biographical information: John A. Smith: R. Brad Martin: About FedEx Corp. FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. With annual revenue of $88 billion, the company offers integrated business solutions utilizing its flexible, efficient, and intelligent global network. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 500,000 employees to remain focused on safety, the highest ethical and professional standards, and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit Cautionary Statement Regarding Forward-Looking Information Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act, such as statements regarding the expected timing of the separation or its completion at all, and statements regarding the future FedEx Corp. and FedEx Freight board of directors and management. Forward-looking statements include those preceded by, followed by or that include the words "will," "may," "could," "would," "should," "believes," "expects," "forecasts," "anticipates," "plans," "estimates," "targets," "projects," "intends" or similar expressions. Such forward-looking statements are based on management's current expectations and are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to: our ability to successfully execute the separation transaction; our ability to obtain any consents or approvals required to complete the separation; potential uncertainty during the pendency of the separation transaction that could affect FedEx Corp.'s financial performance; the possibility that the separation transaction will not be completed within the anticipated time period or at all; the possibility that the separation transaction will not result in the intended benefits; the possibility of disruption, including changes to existing business relationships, disputes, litigation, or unanticipated costs in connection with the separation transaction; uncertainty of the expected financial performance of FedEx Corp. or FedEx Freight following completion of the transaction; negative effects of the announcement or pendency of the transactions on the market price of FedEx Corp.'s securities and/or on the financial performance of FedEx; evolving legal, regulatory, and tax regimes; changes in the economic conditions in the global markets in which we operate; actions by third parties, including government agencies; our ability to successfully implement our business strategy and global transformation program and optimize our network through Network 2.0; our ability to achieve our cost-reduction initiatives and financial performance goals; and other factors which can be found in FedEx Corp.'s and its subsidiaries' press releases and FedEx Corp.'s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended May 31, 2024, and subsequently filed Quarterly Reports on Form 10-Q. Any forward-looking statement speaks only as of the date on which it is made. Neither FedEx Corp. nor anyone else undertakes or assumes any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. View source version on Contacts Media contact:FedEx Media Relations901-434-8100mediarelations@ Investor contact:FedEx Investor Relations901-818-7200ir@
Business Wire
19-05-2025
- Business
- Business Wire
FedEx Announces Leadership for Independent FedEx Freight Company Upon Separation
MEMPHIS, Tenn.--(BUSINESS WIRE)--FedEx Corp. (NYSE: FDX) announced today several leadership roles as the company makes progress to separate its less-than-truckload (LTL) freight division. John A. Smith, chief operating officer, U.S. and Canada, of Federal Express, has been selected to serve as the president and CEO of FedEx Freight, and R. Brad Martin, vice chairman of the FedEx Corp. board of directors, has agreed to serve as chairman of the board of FedEx Freight. Both appointments will be effective upon completion of the previously announced separation of FedEx Freight from FedEx Corp. Plans for the spin-off, which is expected to occur by June 2026, remain on track. 'I cannot think of two individuals with more knowledge of, or commitment to, the long-term success of the FedEx Freight business than John Smith and Brad Martin,' said Raj Subramaniam, president and CEO of FedEx Corp. 'Together they have the track record and expertise to successfully lead this new and exciting chapter for the independent FedEx Freight company.' Prior to the separation, Smith will continue in his current role, which includes leadership of the FedEx Freight business in addition to U.S. and Canada ground operations of Federal Express. He has been a member of the FedEx Freight team (and its predecessor companies) for 25 years of his more than 30 years in the industry. From 2018 until 2021, as president and CEO of the FedEx Freight business, Smith successfully grew the company's revenue and operating income while safely navigating the team through the challenging dynamics associated with the pandemic. Martin chairs the FedEx Corp. Audit and Finance Committee and led the board's strategic analysis of the FedEx Freight business that resulted in the separation decision. It is expected that he will remain on the FedEx Corp. board of directors while also serving as chairman of the board of the new FedEx Freight entity. The company previously appointed Tom Connolly as vice president of LTL Sales. With more than 30 years of industry experience, Connolly is leading the expansion of FedEx Freight's dedicated LTL salesforce. Additional biographical information: John A. Smith: R. Brad Martin: About FedEx Corp. FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. With annual revenue of $88 billion, the company offers integrated business solutions utilizing its flexible, efficient, and intelligent global network. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 500,000 employees to remain focused on safety, the highest ethical and professional standards, and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit Cautionary Statement Regarding Forward-Looking Information Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act, such as statements regarding the expected timing of the separation or its completion at all, and statements regarding the future FedEx Corp. and FedEx Freight board of directors and management. Forward-looking statements include those preceded by, followed by or that include the words 'will,' 'may,' 'could,' 'would,' 'should,' 'believes,' 'expects,' 'forecasts,' 'anticipates,' 'plans,' 'estimates,' 'targets,' 'projects,' 'intends' or similar expressions. Such forward-looking statements are based on management's current expectations and are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to: our ability to successfully execute the separation transaction; our ability to obtain any consents or approvals required to complete the separation; potential uncertainty during the pendency of the separation transaction that could affect FedEx Corp.'s financial performance; the possibility that the separation transaction will not be completed within the anticipated time period or at all; the possibility that the separation transaction will not result in the intended benefits; the possibility of disruption, including changes to existing business relationships, disputes, litigation, or unanticipated costs in connection with the separation transaction; uncertainty of the expected financial performance of FedEx Corp. or FedEx Freight following completion of the transaction; negative effects of the announcement or pendency of the transactions on the market price of FedEx Corp.'s securities and/or on the financial performance of FedEx; evolving legal, regulatory, and tax regimes; changes in the economic conditions in the global markets in which we operate; actions by third parties, including government agencies; our ability to successfully implement our business strategy and global transformation program and optimize our network through Network 2.0; our ability to achieve our cost-reduction initiatives and financial performance goals; and other factors which can be found in FedEx Corp.'s and its subsidiaries' press releases and FedEx Corp.'s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended May 31, 2024, and subsequently filed Quarterly Reports on Form 10-Q. Any forward-looking statement speaks only as of the date on which it is made. Neither FedEx Corp. nor anyone else undertakes or assumes any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Globe and Mail
04-04-2025
- Business
- Globe and Mail
FedEx Stock Just Hit a New 52-Week Low. Should You Buy the Dip in This Dividend Stock?
Logistics and parcel delivery drive global commerce, keeping goods moving amid rising e-commerce and shifting consumer habits. Wall Street has been treading on thin ice, rattled by a cooling industrial economy and lingering macroeconomic uncertainties. Business-to-business services are under pressure, corporate spending remains cautious, and analysts are slashing forecasts across sectors tied to economic output. In such an environment, even the biggest names aren't immune – and FedEx (FDX) is no exception. The shipping titan just cut its outlook for the third consecutive quarter, citing weak demand and revenue stagnation. Investors took notice, sending FedEx stock to a new 52-week low, wiping out nearly one-fourth of its value in the year to date. About FedEx Stock Memphis-based FedEx (FDX) runs vast air and ground networks for shipping and logistics. Its market cap currently stands at $58.7 billion. FedEx has been on a rough road, down 31% from its 52-week high of $313.84 and 23% on a YTD basis. A disappointing Q3 and weak guidance sent shares tumbling, prompting analysts to slash targets. But on March 24, a Jefferies upgrade fueled a 5.2% rebound, with the analyst citing overlooked cost transformation efforts. Apart from just moving packages, FedEx is delivering value. Priced at 13.3 times earnings and 0.66 times sales, the stock trades at a discount compared to industry peers, offering a compelling entry point for long-term holders. Long-term investors get more than an upside: They get a steady income. FedEx has paid dividends for over 20 years. At a 2.53% yield, the annual $5.52 per share dividend is backed by a conservative 23.9% payout ratio, ensuring sustainability and future growth. For those seeking a mix of value, stability, and dividends, FedEx is a first-class delivery. FedEx's Mixed Q3 Results FedEx delivered its fiscal third-quarter earnings report on March 20. Revenue climbed 2.3% year over year to $22.2 billion, outpacing Wall Street's estimate. However, while adjusted EPS grew 16.8% annually to $4.51, it still fell short of projections by 3%. A key highlight was the 6.1% increase in U.S. domestic package revenue, fueled by rising average daily package volume. Yet, FedEx Freight faced headwinds. Declining shipment numbers and lighter loads dragged its revenue down, with the segment's operating income tumbling 23%. FedEx's DRIVE cost-cutting initiative keep delivering, reinforcing profitability amid market shifts. With $2.2 billion in permanent cuts targeted for fiscal 2025, FedEx is set to sustain stronger margins in the years ahead. Plus, the December announcement to spin off FedEx Freight signaled a sharper operational focus and potential value unlock. Shareholders saw direct benefits, with $500 million in buybacks this quarter and a projected $3.8 billion in total returns for this fiscal year. Financially, the company remains stable, reporting $5.1 billion in cash reserves as of Feb. 28. Yet, management struck a cautious note for the rest of fiscal 2025. Revenue for the year is now expected to be flat to slightly down, a downward revision from previous guidance. Adjusted EPS is estimated to be between $18 and $18.60, down from the previous guidance range of $19 to $20, reflecting economic uncertainty, inflation, and trade policy impacts. Analysts tracking FedEx anticipate the company's profit to climb 2.1% year-over-year to $18.18 per share in fiscal 2025, with further bottom-line growth of 12.7% to $20.49 per share in fiscal 2026. What Do Analysts Expect for FedEx Stock? Jefferies upgraded FDX with a $275 price target, seeing a strong risk-reward setup after the recent dip. Analyst Stephanie Moore argues that the market is too focused on macro fears while overlooking FedEx's aggressive cost-cutting moves. With initiatives like DRIVE, FedEx is poised for EPS growth through fiscal 2027, regardless of revenue trends. The board's decision to spin off its LTL freight unit is another catalyst, unlocking shareholder value. Jefferies values FedEx's core operations at ~6.5x FY26 EBITDA, while Freight commands a premium ~12x multiple, reinforcing its long-term investment appeal. FDX stock has a consensus 'Moderate Buy' rating overall. Of the 30 analysts covering the stock, 19 recommend a 'Strong Buy,' one suggests a 'Moderate Buy,' eight play it safe with a 'Hold' rating, and the remaining two analysts advise a 'Strong Sell.' Meanwhile, the shipping stock's mean price target of $293.55 suggests that it could rally as much as 37% from its current price levels. The street-high of $354 implies potential upside of 66%. FedEx isn't in crisis, but slashed guidance and stalled momentum raise concerns. As a key economic indicator, its struggles signal broader uncertainty, giving investors reason to stay vigilant on FDX stock.
