UPS 1Q profit rises 10 percent, beating forecasts

ATLANTA (AP) — United Parcel Service Inc. said Thursday that first-quarter profit rose 10 percent to $1.13 billion, helped by an increase in both ground shipments and next-day air deliveries in the United States. The company beat Wall Street forecasts for profit, but revenue was lower than...

Mnet 73771 Earns Ups Ap Tn
 
              FILE - In this June 20, 2014, file photo, the United Parcel Service logo is seen on the side of a truck as driver Marty Thompson is reflected returning from a delivery in Cumming, Ga. United Parcel Service Inc. is scheduled to report financial results on Thursday, April 28, 2016. (AP Photo/David Goldman, File)

ATLANTA (AP) — United Parcel Service Inc. said Thursday that first-quarter profit rose 10 percent to $1.13 billion, helped by an increase in both ground shipments and next-day air deliveries in the United States.

The company beat Wall Street forecasts for profit, but revenue was lower than expected.

UPS is often considered a bellwether of the economy both in the U.S. and globally because of the number of shipments it handles between businesses and from businesses to consumers. The company's e-commerce business has grown with the boom in online shopping. Lately UPS has seen mixed signals, with growth slowing in emerging economies.

UPS has been adjusting prices — for example raising prices on bulky packages that are lightweight but take up space in trucks. And it has been reducing costs with driver-routing software and other measures.

The Atlanta-based company said it earned $1.27 per share in the first quarter, compared with $1.12 per share a year earlier.

The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $1.22 per share.

Revenue rose 3 percent to $14.42 billion, falling short of forecasts. Six analysts surveyed by Zacks expected $14.58 billion.

About half of the increase in revenue came from the acquisition of Coyote Logistics, which boosted UPS' supply chain and freight segment.

UPS stood by an earlier forecast that full-year earnings will be between $5.70 and $5.90 per share, roughly in line with analysts' expectations.

The shares rose 89 cents to $107.35 in trading before Thursday's opening bell. They have climbed 11 percent since the beginning of the year, while the Standard & Poor's 500 index has increased 2.5 percent. The stock is up more than 9 percent in the last 12 months.

___

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

More in Home