UPS's Stock Jumps After Profit Beats Expectations

By Markets MarketWatch Pulse

United Parcel Service Inc.'s stock ran up 2.9% in premarket trade Tuesday, after the package-delivery giant reported a fourth-quarter profit that beat expectations, although revenue came in a bit shy. Earnings rose to $1.33 billion, or $1.48 a share, from $453 million, or 49 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came in at $1.57, above the FactSet consensus of $1.42. Revenue rose to $16.05 billion from $15.9 billion, below the FactSet consensus of $16.2 billion, with domestic package revenue rising slightly above expectations and international package revenue falling more than forecast. For 2016, the company expects EPS in the range of $5.70 to $5.90, compared with the FactSet consensus of $5.72. "Our business generated strong results in 2015," said Chief Financial Officer Richard Peretz. "While we face uncertain macro-economic conditions, we are continuing to invest for profitable growth." The stock had lost 10% over the past three months through Monday, while the S&P 500 has slipped 7.8%.

Continue Reading Below

Copyright © 2016 MarketWatch, Inc.