UPS Beat Revenue Expectations While Profit Matches

By Tomi KilgoreMarketsMarketWatch Pulse

United Parcel Service Inc. reported third-quarter earnings that rose to $1.27 billion, or $1.44 a share, from $1.26 billion, or $1.39 a share, in the same period a year ago. That matched the FactSet consensus of $1.44. Revenue rose 4.9% to $14.9 billion from $14.2 billion, beating the FactSet consensus of $14.7 billion. U.S. domestic package revenue increased 4.8% to $9.3 billion, above the FactSet consensus of $9.0 billion, while international package revenue growth of 2.2% to $3.0 billion matched expectations and supply chain and freight revenue growth of 8.1% to $2.62 billion fell just shy of expectations of $2.66 billion. The package delivery giant affirmed its 2016 adjusted earnings per share outlook of $5.70 to $5.90. The stock, which was still inactive in premarket trade, has climbed 13% year to date, while the S&P 500 has gained 4.7%.

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