Demand outlook is decent; no major demand destruction from rising oil prices. B2B volumes are benefiting from data center buildout. The aftermarket reaction was due to full-year guidance slightly below whisper numbers and profit-taking after 30% YTD outperformance.
FedEx recently spun off its truckload business, allowing management to focus on the core parcel business. Near-term there will be model confusion until August when older calendar year data is provided. Second-half EPS growth is around 17-20%, weighted to Q4 due to peak season.
