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UPS gains 2% after second quarter earnings beat forecasts

Published 28/07/2015, 12:55
© Reuters.  UPS rises after second quarter earnings beat forecasts
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Investing.com - Global shipping giant United Parcel Service (NYSE:UPS) reported better than expected second quarter earnings ahead of Tuesday’s opening bell, sending its shares higher in pre-market trade.

UPS said that second quarter earnings per share came in at $1.35, a 12% increase over adjusted results for the same period last year and above expectations for earnings of $1.27 per share.

The company’s second quarter revenue totaled $14.1 billion, down 1.2% over the same quarter last year and missing forecasts for revenue of $14.51 billion. Currency exchange rates and lower fuel surcharges reduced total reported revenue growth.

U.S. domestic revenue increased $140 million over the second quarter last year to $8.8 billion.

Total company shipments increased 2.1% over the second quarter last year to 1.1 billion packages, led by U.S. Deferred Air products and International Export shipments.

"During the quarter, UPS continued to invest for the future by expanding capacity and launching new capabilities that provide higher value to customers," said David Abney, UPS chief executive officer.

"The strong momentum in our International segment is expected to continue and gives us confidence in achieving the upper end of our guidance range," he added.

The company's guidance for 2015 full-year diluted earnings per share is $5.05 to $5.30, a 6% to 12% increase over adjusted 2014 results.

"Even though the U.S. economy appears to be growing at a slower pace, our global portfolio and performance reinforces our expectations to attain the higher-end of the guidance range," said Richard Peretz, UPS chief financial officer.

Following the release of the report, shares in UPS rose 1.94% in pre-market trade to $97.00 from a closing price of $95.15 on Monday.

Meanwhile, U.S. stock futures pointed to a mildly higher open. The Dow futures indicated a gain of 0.45% at the open, the S&P 500 futures pointed to a rise of 0.55%, while Nasdaq 100 futures advanced 0.6%.

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