Today, FedEx (NYSE:FDX) is making headlines with its announcement to spin off its FedEx Freight division into a separate publicly traded company. FedEx shares rose 4.9% following the announcement.
The enterprise value of FedEx Freight is expected to be more than $30 billion marking its impressive contribution to FedEx's revenues.
FedEx Freight, which is set to become a separate publicly traded company, contributed $9.4 billion in revenue in 2023. This makes it the largest business segment by sales in the less-than-truckload (LTL) industry.
By FedEx spinning off the business, FedEx Freight can become a separate independent entity that unlocks its value to public shareholders.
You can make more informed investment decision by visiting GuruFocus now and deep dive into FedEx's performance with charts, breakdowns, 30-year financial data, and more!
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.