UPS beats by $0.04, reports revs in-line; reaffirms FY14 EPS guidance
Reports Q3 (Sep) earnings of $1.32 per share, $0.04 better than the Capital IQ Consensus of $1.28; revenues rose 5.7% year/year to $14.29 bln vs the $14.2 bln consensus.
- Operating profit increased 8.3%, resulting from balanced growth across all three segments.
- Daily packages in the U.S. were 6.9% higher as demand from both B2C and B2B customers improved.
- International Export shipments increased 9.4% with strong growth in both Asia and Europe.
- UPS delivered 1.1 billion packages around the world, up 6.9% over the third quarter 2013.
- U.S. Domestic revenue +5.3% to $8.7 bln.
- Daily package volume improved 6.9%, led by gains in UPS Ground and Deferred products up 7.7% and 5.9%, respectively.
- E-commerce continued to drive strong B2C growth, while B2B deliveries were also higher this quarter.
- Operating profit was $1.3 billion, up 7.8%.
- The co announced its expectations for the upcoming holiday season. UPS expects shipments delivered during the month of December to climb 11% over the prior year.
- As previously announced, the company committed an additional $175 million in operating expense and $500 million in capital expenditures to enhance its capabilities and prepare the network for peak and future volume growth.