UPS Profit Falls Short Of Expectations
UPS said Tuesday it had net income of $453 million, or 49 cents a share, in the fourth quarter, down from $1.167 billion, or $1.25 a share, in the year-earlier period, weighed down by special charges. Excluding those charges, per-share earnings came to $1.25. Revenue came to $15.895 billion, up from $14.976 billion. The FactSet consensus was for EPS of $1.28 on revenue of $15.768 billion. "The financial results were below our expectations," Chief Executive David Abney said in a statement. "As we move into 2015, we will address this disparity with both cost and revenue actions. We will take actions necessary to improve profitability by increasing operational efficiency and adjusting price where appropriate. Our growth strategy is sound and we reaffirm our long-term target of 9%-to-13% earnings per share growth." UPS delivered 1.3 billion packages during the quarter, up 8.1% over the year-ago period. The company is still expecting 2015 adjusted per-share earnings of $5.05 to $5.30. Shares were not yet active in premarket trade, but are down 5.2% in the last three months, while the S&P 500 has gained 0.2%.
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