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UPS reports lower than expected Q3 sales

Published 27/10/2015, 11:00 pm
© Reuters.  UPS's stock slides after Q3 sales miss expectations
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Investing.com - Global shipping giant United Parcel Service Inc (N:UPS) reported weaker than expected third quarter revenue ahead of Tuesday’s opening bell, despite beating on earnings per share figures.

UPS said that third quarter earnings per share came in at $1.39, a 5.3% increase over the same period last year and above expectations for earnings of $1.37 per share.

International operating profits were up more than 10% to $507 million, driving company-wide results higher.

The company’s third quarter revenue totaled $14.24 billion, down 0.3% over the same quarter last year and missing forecasts for revenue of $14.43 billion, as currency exchange rates and lower fuel surcharges weighed.

U.S. domestic revenue of $8.9 billion was up 1.9% over the same quarter last year.

Total company shipments increased 1.9% over the third quarter last year to 1.1 billion packages, led by U.S. air products and European transborder shipments.

"Third quarter results reflect strong progress on our long-term initiatives despite uneven economic conditions," said David Abney, UPS chief executive officer.

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

UPS CEO David Abney and CFO Richard Peretz will discuss third quarter results with investors and analysts during a conference call at 8:30AM ET.

Following the release of the report, shares in UPS shed 1.36%, or $1.44, in pre-market trade to $104.80 from a closing price of $106.18 on Monday.

Meanwhile, U.S. stock futures pointed to a lower open. The Dow futures shed 21 points, or 0.12%, the S&P 500 futures dipped 2 points, or 0.09%, while the Nasdaq 100 futures shed 2 points, or 0.04%.

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