UPS misses by $0.10, reports revs in-line; guides FY14 EPS below consensus
Reports Q1 (Mar) earnings of $0.98 per share, $0.10 worse than the Capital IQ Consensus Estimate of $1.08; revenues rose 2.6% year/year to $13.78 bln vs the $13.88 bln consensus.
- Guidance: Co sees FY14 EPS at low end of $5.05-5.30 range vs. $5.16 Capital IQ Consensus Estimate, due to the challenging start to 2014
- Unusually harsh weather weighed on operating profit by approximately $200 million, due to increased expenses and slower revenue growth.
- Average daily shipments in the U.S. climbed 4.2% driven primarily by large e-commerce shippers using lightweight deferred shipping solutions.
- "Much of the U.S. economy was negatively affected by the severe weather conditions in the first quarter, resulting in lower UPS operating results versus the prior year," said Scott Davis, UPS chairman and CEO. "International and the Supply Chain and Freight segment benefitted from positive momentum during the quarter as customers utilized the strategic investments made by UPS to strengthen our portfolio."