FedEx stock continues to soar on Q4 beat, guidance

FedEx stock (FDX) is delivering serious gains in Wednesday’s trading after the freight and parcel service beat fiscal fourth-quarter earnings estimates on Tuesday. In addition to positive results, the company announced a $2.5 billion share buyback plan and raised its full-year 2025 guidance.

Market Domination's Julie Hyman and Josh Lipton examine FedEx's stock momentum as it evaluates the worth of its freight segment and the success of cost-cutting initiatives.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Luke Carberry Mogan.

Video transcript

Let's talk about fedex to those shares soaring after topping estimates in the fiscal fourth quarter, the company sharing more details on the success of its massive cost cutting initiatives and unveiling plans to reach, we purchase up to $2.5 billion worth of shares in its fiscal year which is already begun fiscal 2025.

The company also in a bit of a surprise.

It's exploring options for business which also analysts seem to like here but also the forecast for the full year was also a pleasant surprise for investors.

Yes, they did listen, they forecast profit above consensus, you know, not buying back 2.5 billion of stock for the next year.

But to your point, Julie, I think ears did really perk up around that freight business.

They talked about assessing the role of that unit in the portfolio and quote potential steps to further unlock sustainable shareholder value.

They said we're committed to completing this review thoroughly and deliberately by the end of the calendar year and certainly that made some headlines and got some attention this amid the backdrop of a lot of cost cutting and efficiency finding at the company.