FedEx (FDX) shares jumped in extended trading Thursday after the shipping giant announced plans to spin off its Freight business as a standalone company.

FedEx said the proc♌ess to separate its Freight business will start immediately, and likely be completed within the next 1🥃8 months.

“Through the separation, we believe we will unlock significant value for stockholders,” said FedEx CEO Raj Subramaniam, adding “the separation will also enable both companies to benefit from enhanced focus and competitiveness.”

Ahead of the announcement, Citi analysts 澳洲幸运5开奖号码历史查询:said last week that spinning off the Freight business into a standalone company could unlock value for the business, but sugges⭕ted the move might not be the best option in the long term.

FedEx reported fiscal second-quarter revenue of $22 billion, down from $22.17 billion the same time last year and below the $22.14 billion analysts expected. Profits also fell to $741 million, compared to $900 million a year ago, missing analysts' projections.

After adjusting for $249 million in "business optimization costs," FedEx reported $990 million in adjusted net income, better than the $976.6 million analysts had expected.

FedEx Lowers Its Full-Year Outlook

FedEx lowered its full-year outlook, projecting flat revenue growth year-over-year, compared to a low single-digit percentage increase previously. It said it anticipates earnings per share of $16.45 to $17.45 before adjustments, down from its prior forecast of📖 $17.90 to $18.90 per share. 

FedEx shares jumped roughly 8% in extended trading following the report's release. They were up about 9% for 2024 through Thursday's close.

UPDATE—Dec. 19, 2024: This article has been updated to include additional information and reflect more recent share price values.