United Parcel Service Earnings: Here’s Why Investors are Buying Shares Now

United Parcel Service, Inc. (NYSE:UPS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.38%.

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United Parcel Service, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4% to $1.04 in the quarter versus EPS of $1.00 in the year-earlier quarter.

Revenue: Rose 2.27% to $13.43 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: United Parcel Service, Inc. reported adjusted EPS income of $1.04 per share. By that measure, the company beat the mean analyst estimate of $1.01. It missed the average revenue estimate of $13.47 billion.

Quoting Management: “UPS demonstrated its ability to consistently deliver results,” said Scott Davis, UPS Chairman and CEO. “The UPS product portfolio is in-tune with connected and empowered consumers, creating a competitive advantage that positions us well for sustained growth.”

Key Stats (on next page)…

Revenue decreased 7.8% from $14.57 billion in the previous quarter. EPS decreased 21.21% from $1.32 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.26 to a profit $1.23. For the current year, the average estimate has moved down from a profit of $5.11 to a profit of $4.99 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)