12.07.2013 15:31:34

UPS Slashes 2013 Outlook, Sees Q2 EPS Below View

(RTTNews) - United Parcel Service (UPS), the world's largest package delivery company, on Friday slashed its adjusted earnings guidance for the full-year 2013, while also providing earnings outlook for the second quarter that was well below current analysts' expectations. Following the announcement, the company's stock is trading lower by more than five percent in early dealings.

"We expect the second quarter market trends to persist and UPS is adapting to meet these conditions. Despite downward revisions to economic forecasts for the second half of the year, we anticipate solid profit growth," UPS Chief Financial Officer Kurt Kuehn said in a statement.

The company noted that the weak expectations are attributable to overcapacity in the global air freight market, increasing customer preference for lower-yielding shipping solutions, and a slowing U.S. industrial economy. UPS is also experienced some slowing in package volume growth as a result of labor negotiations.

The Atlanta, Georgia-based company said it now anticipates earnings for the second quarter to be $1.13 per share.

On average, 28 analysts polled by Thomson Reuters currently expect the company to report earnings of $1.20 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.

Looking ahead to fiscal 2013, the company slashed its adjusted earnings guidance to a range of $4.65 to $4.85 per share from the prior forecast in the range of $4.80 to $5.06 per share, which was provided along with its first-quarter results.

Street is currently looking for full-year 2013 earnings of $4.98 per share.

The slashed earnings guidance range for the full year still represents a 3 to 7 percent growth from the adjusted earnings of $4.53 per share reported for fiscal 2012.

For the first quarter, UPS had reported in late April a profit that increased seven percent from last year, reflecting revenue growth amid increased U.S. domestic and international volumes. Despite the continuing macro uncertainty, the company had then reaffirmed its earnings guidance for the full-year 2013.

Net income grew to $1.04 billion or $1.08 per share from $970 million or $1.00 per share in the prior-year quarter. Adjusted net income was $1.00 billion or $1.04 per share, compared to $970 million or $1.00 per share in the prior-year quarter. Revenues for the quarter grew 2.3 percent to $13.43 billion from last year.

UPS closed Thursday's regular trading session at $91.45, up $0.20 on a volume of 3.45 million shares.

Analysen zu United Parcel Service Inc. (UPS)mehr Analysen

30.01.25 United Parcel Service Buy UBS AG
19.12.24 United Parcel Service Outperform Bernstein Research
25.10.24 United Parcel Service Buy UBS AG
24.10.24 United Parcel Service Buy UBS AG
24.10.24 United Parcel Service Neutral JP Morgan Chase & Co.
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