United Parcel Service Inc. Earnings: Profit Declines but Beats Estimates

S&P 500 (NYSE:SPY) component United Parcel Service Inc. (NYSE:UPS) reported its results for the fourth quarter. United Parcel Service offers services in the package and freight delivery industry.

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United Parcel Service Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for United Parcel Service Inc. fell to $725 million (74 cents per share) vs. $1.02 billion ($1.02 per share) a year earlier. This is a decline of 29.3% from the year earlier quarter.

Revenue: Rose 5.6% to $14.17 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: UPS reported adjusted net income of $1.28 per share. By that measure, the company beat the mean estimate of $1.26 per share. It fell short of the average revenue estimate of $14.45 billion.

Quoting Management: “UPS delivered record fourth quarter results in volume, revenue and profitability,” said Scott Davis, UPS chairman and CEO. “In short, the quarter was a testament to the power of UPS’s global model and the company’s ability to operate efficiently in evolving markets.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the third quarter, by one cent in the second quarter, and by 3 cents in the first quarter.

Revenue has risen the past four quarters. Revenue increased 8% to $13.17 billion in the third quarter. The figure rose 8.1% in the second quarter from the year earlier and climbed 7.3% in the first quarter from the year-ago quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from $1.04 a share to $1.02 over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $4.24 per to share to $4.25.

Competitors to Watch: FedEx Corporation (NYSE:FDX), Air Transport Services Group Inc. (NASDAQ:ATSG) and Air T, Inc. (NASDAQ:AIRT).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com