UPS Shares Drop After Earnings Miss

United Parcel Service saw its shares drop Tuesday after it posted revenue and earnings for the quarter that came up short of expectations on Wall Street.

The package delivery behemoth posted an outlook for 2017 that was below Wall Street expectations as well.

Shares at UPS were lower by over 3% in trading before the opening bell on Tuesday following the quarterly financials announcement.

UPS posted earnings for the fourth quarter of $1.63 per share with revenue reaching $16.92 billion. Analysts were expecting UPS to have per share earnings of $1.69 with revenue of $16.93 billion.

Volume growth and revenue accelerated during the holiday season for UPS and the company provided high levels of service for its clients said UPS CEO and chairman David Abney via a prepared statement.

The company’s international segment was able to deliver yet another excellent performance, while the U.S. segment managed to get through considerable changes in its product mix, added the CEO.

The company initiatives and strategies are starting to create value for the long term for both clients of UPS and shareowners concluded the chairman.

Late in 2016, UPS announced that it expected to exceed 700 million deliveries of packages worldwide during the holiday season. During the season, UPS delivered over 712 million packages representing an increase of 16% over the same quarter one year ago.

The company announced that 1.4 million packages were delivered during 2016, which represented an increase of 7.1% from 2015. UPS announced that its average shipments per day increased by 5% to over 19.6 million in its domestic segment in the U.S. for its just ended quarter.

Revenue was up 6.3% compared to the same quarter one year ago.

Its international segment saw strong growth in value for all its major products, said UPS. Revenue for that segment was up 5% thanks to a jump of 8.4% in daily shipments of exports.

In 2016, the company paid $2.8 billion in dividends, which was an increase of more than 6.7% per share compared to the one year before. UPS repurchased more than 25.4 million shares with a value of $2.7 billion.

The company posted its outlook for 2017 for between $5.80 and $6.10 per share, which was less than the $6.16 outlook by Wall Street.

UPS announced that investment in operations research project or ORION provided benefit in the just ended quarter.

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