UPS Lowers 4Q Guidance as Surge in Last-Minute Orders Takes Toll

In advance of its fourth-quarter earnings announcement, UPS (NYSE: UPS  ) announced today that it lowered its expected full-year earnings per share to $4.57, below its previous guidance of $4.65 to $4.85.

UPS attributed this to three factors, including a compressed peak holiday season as a result of the timing of the Thanksgiving holiday, an "unprecedented level of online shopping that included a surge of last-minute orders," and the weather. Together, these resulted in higher costs as it had to employ 30,000 more temporary employees than it expected, which brought its total holiday temporary employment count to 85,000.

In total, UPS noted it delivered its most packages ever on Dec. 23, topping 31 million packages. This represented a 13% over the highest day in 2012, and it was also 7.5% more than it anticipated. In addition to the larger number of shipments, the peak day also occurred six days later than expected.

UPS concluded that while its fourth-quarter results would be lower than previously announced, it anticipated that its earnings-per-share growth in 2014 would continue to be in line with its target range of 10%-15%. It also announced it would provide further guidance when it fully releases its earnings on Jan. 30.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2799851, ~/Articles/ArticleHandler.aspx, 7/24/2014 9:50:40 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement