UPS 2Q profit beats Street as overseas business improves
ATLANTA (AP) — Overseas business helped UPS during its second quarter, as did the absence of a hefty charge recorded a year ago.
The package-delivery company earned $1.23 billion, or $1.35 per share, for the three months ended June 30. A year earlier it earned $454 million, or 49 cents per share.
Last year’s quarter included a $665 million charge for the transfer of some post-retirement liabilities to defined-contribution health care plans.
The results topped Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of $1.26 per share.
The Atlanta company’s revenue slipped $14.1 billion from $14.27 billion, hindered by lower fuel surcharges and foreign currency fluctuations.
Six analysts surveyed by Zacks expected higher revenue of $14.49 billion.
Total shipments climbed 2.1 percent to 1.1 billion packages. UPS daily export shipments rose 5.5 percent, mostly due to an 8.5 percent increase in intra-Europe shipments.
United Parcel Service Inc. maintained its full-year forecast for earnings in a range of $5.05 to $5.30. Analysts surveyed by FactSet expect $5.19 per share.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on UPS at http://www.zacks.com/ap/UPS
Keywords: United Parcel Service, Earnings Report, Priority Earnings