FedEx’s loss of its contract with the U.S. Postal Service will likely be a roughly $1.5 billion hit to revenue, BMO Capital Markets analysts say in a research note. However, the loss of the contract will likely lead to improved margins once costs associated with the USPS deal are phased out, the analysts say. FedEx “will be able to redesign its air network schedule in a manner that removes significant cost pressures over time.” FedEx shares fall 3.1%.