FedEx Corp. (NYSE: FDX) reported its second-quarter results after Thursday's closing bell. Here's a look at the key figures from the quarter.
The Details: FedEx reported adjusted earnings of $4.05 per share, beating the $3.91 consensus estimate. Quarterly revenue came in at $22 billion, missing the $22.11 billion analyst consensus estimate.
The company said its consolidated operating results were negatively affected by lower-than-expected FedEx Freight revenue and profit, as sustained weakness in U.S. industrial production continued to pressure less-than-truckload industry demand.
The lower FedEx Freight results were mostly offset by cost reduction benefits at Federal Express through its DRIVE program initiatives and higher base yields at each transportation segment.
FedEx Freight segment operating results decreased during the quarter due to fewer shipments, lower fuel surcharges and reduced weight per shipment and were partially offset by higher base yield.
"Our second quarter results demonstrate that our efforts to transform our operations are working. The Federal Express segment delivered operating profit growth despite several headwinds, including the continued weak U.S. domestic demand environment as well as the expiration of our U.S. Postal Service contract," said Raj Subramaniam, FedEx Corp. president and CEO.
FedEx Freight Spin Off: FedEx also announced that it has decided to pursue a full separation of FedEx Freight through the capital markets, creating a new publicly traded company. FedEx said the separation is expected to be achieved in a tax-efficient manner for FedEx stockholders and executed within the next 18 months.
"This is the right time to pursue a separation as we respond to the unique dynamics of the LTL market," said Subramaniam.
"This announcement is a testament to the strength of the business our team has built, and to our dedication to doing what's best for our customers, our team members, and our stockholders. Through this process, we will unlock value for our Freight business and position FedEx to create even greater value for stockholder," Subramaniam added.
Outlook: FedEx now expects approximately flat revenue year-over-year, versus its prior forecast of a low single-digit percentage increase.
FDX Price Action: According to Benzinga Pro, FedEx shares are up 7.29% after-hours at $296 at the time of publication Thursday.