UPS Earnings: After Four Straight Increases, Revenue Drops as Net Income Falls

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

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

United Parcel Service Inc. Earnings Cheat Sheet

Results: Net income for United Parcel Service Inc. fell to $469 million (48 cents per share) vs. $1.07 billion ($1.06 per share) a year earlier. This is a decline of 56.3% from the year-earlier quarter.

Revenue: Fell 0.7% to $13.07 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: United Parcel Service Inc. reported adjusted net income of $1.06 per share. By that measure, the company fell short of mean estimate of $1.17 per share. It fell short of the average revenue estimate of $13.7 billion.

Quoting Management: “Our results were achieved in an environment of slowing global trade and changing market dynamics,” said Scott Davis, UPS chairman and CEO. “This not only highlights the flexibility of our business model; it illustrates the breadth of the UPS product portfolio in meeting the needs of customers.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 8%.

The company has fallen short of estimates for two consecutive quarters. In the second quarter, it missed expectations by one cent with net income of $1 versus a mean estimate of net income of $1.01 per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $1.23 per share to $1.20, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At $4.83 per share, the average estimate for the fiscal year has fallen from $4.89 ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

Don’t Miss These Additional Hot Stories:

Here’s Why Pharma Stocks are in Play

Tesla Motors: Is It Time to Buy Into the EV Revolution?

Apple Earnings Sneak Peek