�United Parcel Service Inc. (NYSE: UPS), the Atlanta, Georgia-based package delivery company, today announced better-than-expected profit for its fourth quarter. The company also forecast strong growth in 2012.�
For the fourth quarter of 2011, UPS� profit fell sharply primarily due to a change in how the company accounts for its pension expenses. Excluding the impact of the change, the company�s profit for the quarter increased, mainly due to strong growth in its consumer business. The strong growth in the consumer business was driven by online shopping during the recent holiday season.�
UPS reported fourth-quarter net income of $725 million, or $0.74 per share, compared with $1.025 billion, or $1.02 per share reported for the same period in the previous year. Excluding charges related to pension-accounting change, the company�s profit for the quarter was $1.28 per share, compared with analysts� estimate of $1.26 per share.�
UPS reported fourth-quarter revenue of $14.2 billion, representing an increase of 6% on a year-over-year basis. The company�s revenue for the quarter fell short of Street estimates of $14.4 billion.�
Looking ahead, UPS expects profit in 2012 to come in between $4.75 per share and $5 per share, which would represent 9% to 15% growth over 2011 levels. Analysts currently expect the company to report 2012 earnings of $4.80 per share.�
Scott Davis, CEO of UPS, said that he expects continued strong demand in U.S. market. Davis said that the U.S. is one of the few economies where expectations are greater than last year.�
Back in December, UPS� rival FedEx (NYSE: FDX) had announced better-than-expected quarterly profits, driven by online sales.�
UPS shares are marginally lower in trading today. The stock fell to an intra-day low of $74.83 in trading today, and at last check, it was down 0.85% to $75.50 on above average volume of 5.23 million.�
In the last one year, UPS shares have gained 5.30%. In the same period, the S&P 500 has risen 2.04%, while UPS� rival FedEx has risen 1.25%.�
No comments:
Post a Comment