FedEx falls as trucking costs squeeze margins

** FedEx FDX.N shares down 1.8% at $299 before the bell on Thurs after higher trucking costs squeezed Q3 US express margins despite a profit beat and raised annual outlook

** US express margin fell to 6.6% from 6.8% a year earlier; co expects higher hired-trucker costs to have a bigger impact in the peak holiday qtr

** Q3 adjusted EPS rose 28% to $3.74, beating estimates of $3.36 per LSEG; co forecast 2026 adjusted EPS of $18-$18.60 vs analysts' expectation of $17.73 per LSEG data

** Analysts at J.P. Morgan said FedEx's balance sheet leaves significant room for shareholder returns, even as investors digest a softer fourth-quarter profit outlook

** Stock up about 30.9% YTD vs a 13.1% gain in S&P 500 .SPX