United Parcel Service Inc. (UPS) (NYSE: UPS) reported adjusted EPS that matched expectations for the fourth quarter of 2019 while revenues fell short of estimates. Shares were down 0.83% in premarket hours on Thursday.
Total revenue rose 3.6% year-over-year to $20.56 billion, driven by strong average daily volume growth during the peak holiday season. The topline results, however, fell below estimates of $20.66 billion.
On a GAAP basis, the company reported a net loss of $106 million, or $0.12 per share, compared to a net income of $453 million, or $0.52 per share, in the prior-year period. The results included mark-to-market pension charges, transformation charges and legal expenses related to the New York cigarette case. Excluding the aforementioned charges, earnings grew 8.8% to $2.11 per share, in line with forecasts.
During the quarter, average daily volume levels exceeded 26.6 million packages, up 7.5%, driven by high demand for air services in the US.
Also read: Altria Q4 2019 Earnings Snapshot
In the US Domestic segment, revenues increased 6.5% to $13.4 billion, with growth across all products. Total volume across all products grew around 9%. Unit costs decreased 2.1%.
Revenues in the International segment amounted to $3.7 billion. Export volume dipped slightly as gains on intra-Europe, intra-Asia and US export trade lanes did not fully offset the declines into and out of the UK and on the Asia-US lane.
In the Supply Chain and Freight segment, revenues totaled $3.3 billion, with growth in Logistics, Marken and UPS Freight.
Adjusted EPS is expected to come in a range of $7.76 to $8.06 for fiscal year 2020. Capital expenditures are estimated to be around $6.7 billion.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.
Most Popular
United Parcel Service (UPS) seems on track to regain lost strength
Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic
IPO Alert: What to look for when Boundless Bio goes public
Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.
Nike (NKE) bets on innovation and partnerships to return to high growth
Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company