>>> UPS beats by $0.03, misses on revs; reaffirms FY15 EPS guidance

UPS beats by $0.03, misses on revs; reaffirms FY15 EPS guidance

Reports Q1 (Mar) earnings of $1.12 per share, $0.03 better than the Capital IQ Consensus Estimate of $1.09; revenues rose 1.4% year/year (+3.6% ex-FX) to $13.98 bln vs the $14.25 bln consensus.
  • Profitability improved across all segments, pricing initiatives drove yields higher
  • international operating profit increased 14%; U.S. Domestic up 11%
  • U.S. Domestic first quarter revenue increased 3.8% to $8.8 billion. Daily package volume improved 2.4%. Total revenue per package was up 1.3% primarily due to UPS Ground yield increasing 3.1%. Operating profit increased to $1.0 billion, an 11% improvement from the prior-year period. Operating margin expanded 70 basis points, driven by productivity gains.
Co reaffirms guidance for FY15, sees EPS +6-12% to $5.05-5.30 vs. $5.15 Capital IQ Consensus Estimate.