Categories AlphaGraphs, Earnings, LATEST, Other Industries

UPS drops after Q3 revenues miss expectations

United Parcel Services (UPS) dropped 3.4% in morning hours on Wednesday after the company reported third-quarter 2018 revenues that missed market expectations, despite earnings coming in line with estimates.

Consolidated revenues grew 7.9% to $17.4 billion from the same period last year. Average revenue yield increased 4%, with base-pricing gains in all categories. Net income was $1.50 billion or $1.73 per share compared to $1.25 billion or $1.44 per share in the prior-year quarter. Adjusted EPS grew 26.4% to $1.82.

UPS third quarter 2018 Earnings Infographic
UPS Q3 2018 Earnings Infographic

In the US Domestic segment, revenues grew 8.1%, driven by higher demand for the company’s solutions as well as strong yield expansion. All products recorded increases in revenue, volume and revenue per piece. Daily shipments rose 3.3%, led by Next Day Air and Ground products while ground revenue per piece increased by 5.1%.

In the International segment, revenue grew 3%, and was broadbased across all regions. Export volumes increased across all regions, with Europe seeing a growth of 4.2% on top of the 25% growth in the third quarter of 2017.

The Supply Chain and Freight segment revenues rose 12%, helped by strategies focused on small and medium-sized customers. Revenues in the Forwarding business grew 17%, helped by revenue management initiatives and high-value solutions which generated yield improvement. Revenues in UPS Freight grew 11%, driven by higher pricing and heavier shipments.

US Postal Service is raising stamp prices to salvage itself

For the full year of 2018, UPS expects adjusted EPS to be in the range of $7.03 to $7.37. The company raised its free cash flow guidance to over $5 billion for 2018. For the fourth quarter of 2018, adjusted EPS is expected to increase about 15%.

Also Read:  Musk’s special pods to save Thai boys ready, but eight already rescued


Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

With right product mix and CAPEX discipline, Canopy Growth (CGC) can hit growth path

The latest quarterly performance of Canopy Growth Corporation (NYSE: CGC) was nothing short of a disaster, with the cannabis firm incurring a whopping C$1-billion loss in the final months of

Google’s cloud business is well-positioned for growth going forward

Alphabet’s (NYSE: GOOGL) subsidiary Google makes most of its money through its search and advertisement businesses but its cloud division is no small player. This segment is a significant growth

Nio (NIO) picks up speed after hitting COVID-19 roadblock and positions itself for future growth

The coronavirus outbreak impacted the automobile industry as a whole as operations were disrupted and people deferred their vehicle purchases due to a slump in the economy. Overall passenger vehicle

One thought on “UPS drops after Q3 revenues miss expectations

Comments are closed.