UPS Earnings: Revenue Ticks Higher
United Parcel Service, Inc. (NYSE:UPS) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Despite a solid quarter, UPS issued lighter guidance for 2013. Shares are down 1.51%.
United Parcel Service, Inc. Earnings Cheat Sheet
Results: Net income increased to $1.28 billion ($1.32 per diluted share) in the quarter versus a net loss of $814 million in the year-earlier quarter.
Revenue: Rose 2.85% to $14.57 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: United Parcel Service, Inc. reported adjusted net income of $1.32 per share. By that measure, the company missed the mean analyst estimate of $1.38. It beat the average revenue estimate of $14.43 billion. Including a non-cash $3 billion charge for pension and retirement benefits, UPS lost $2.78 billion, or $1.83 a share.
Quoting Management: “2012 presented its challenges, most notably weak global trade. Nonetheless, UPS executed well, delivering superior service to customers,” said Scott Davis, UPS Chairman and CEO…
…Despite modest macro growth expectations for 2013 and uncertainty in the U.S. caused by the lack of progress in Washington, the UPS business model will deliver consistent results, with operating profit growth in all segments.”
Revenue increased 11.47% from $13.07 billion in the previous quarter. Net income increased to $0 in the quarter versus a net loss of $469 million 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 $1.12 to a profit $1.09. For the current year, the average estimate has moved down from a profit of $4.59 to a profit of $4.58 over the last ninety days.
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(Company fundamentals provided by Xignite Financials.)