UPS's Stock Climbs After Profit Rises Above Expectations

By MarketWatch Pulse

United Parcel Service Inc.'s stock ran up 1.5% in premarket trade Tuesday, after the package-delivery giant beat second-quarter profit expectations, although sales missed. Earnings climbed to $1.23 billion, or $1.35 a share, from $454 million, or 49 cents a share, in the same period a year ago. That beat the FactSet earnings-per-share consensus of $1.27. Revenue slipped 1.2% to $14.1 billion, below the FactSet consensus of $14.5 billion. Domestic package revenue rose 1.6% to $8.81 billion, but missed the FactSet consensus of $9.01 billion, while international package sales and supply chain and freight revenue declines slightly more than expected. The company affirmed the full-year 2015 EPS outlook of $5.05 to $5.30. "Even though the U.S. economy appears to be growing at a slower pace, our global portfolio and performance reinforces our expectations to attain the higher-end of the guidance range," said Chief Financial Officer Richard Peretz. The stock has lost 5.6% over the past three months through Monday, while the S&P 500 has slipped 2.2%.

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