UPS Earnings: After Four Straight Increases, Revenue Drops as Net Income Falls
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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.”
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.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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