FedEx Corporation Earnings Report

Global logistics giant FedEx Corporation (NYSE:FDX) is set to report its quarterly earnings later this week. Analysts at Stifel predict a significant move in the stock, especially if the company announces plans to spin off its freight business.

Stifel indicated that FedEx’s shares are poised for a "sizable move" following the earnings report, which is scheduled after the close on Thursday. The options market suggests an implied movement of at least 10% in either direction.

Stifel rates FedEx as Buy with a target price of $321.00.

A primary area of focus will be the company's strategic review of its freight business. Stifel notes a greater than 50% chance that FedEx will proceed with a spinoff in the near future.

Stifel analysts believe such a move could add approximately $100 to the stock price, as the value driver appears to be that FedEx’s less-than-truckload U.S. business enjoys a significant premium compared to its core operations.

Investors have been speculating about a potential freight spinoff, particularly as FedEx undertakes cost-cutting measures amid declining revenue and contracting margins. The company has also struggled with a slowdown in global trade trends over the past two years.

FedEx is projected to report an EPS of $4.05 on revenue of $22.17 billion for the quarter ending November 30, according to data from Investing.com.