FedEx Freight beat BofA's profit estimate and raised its operating income forecast. Shipment growth remains weak, and BofA cut its share-price target, but the better results and higher company forecast carry more weight.
The higher forecast means FedEx Freight expects more operating income during its transition period. Pricing is doing most of the work, so weak shipment growth remains a concern. BofA also cut its share-price target, citing uncertain freight demand and peer comparisons. That warning does not erase the stronger results and company forecast.
The story says XPO has higher expected volume growth and margins than FedEx Freight. It reports no new change to XPO's business or results, so it does not change the outlook for the company.
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