UPS jumps 6% on blowout quarter

chart_ws_stock_unitedparcelserviceinc.top.png By Ben Rooney, staff reporter


NEW YORK (CNNMoney.com) -- Shares of UPS surged Thursday after the world's largest delivery company reported sales and earnings that beat analysts' expectations and raised its outlook for the rest of the year.

UPS (UPS, Fortune 500) was up $3.60 a share, or 6%, to $63.61 in afternoon trading.

The rally came after UPS said second-quarter earnings surged 90% on strong sales in the United States and abroad. Big Brown also said it expects earnings to grow this year despite the "slow pace of the U.S. recovery."

Investors cheered the results because UPS, which delivers consumer products around the world, is seen as a proxy for overall economic activity. Stocks were up more than 2% with about two hours left in the session.

"The market is adjusting to the idea that companies can still perform in a slow growth environment," said James Ragan, an analyst who covers UPS at Crowell, Weedon & Co.

While the results benefited from an easy comparison to last year, Ragan said investors were encouraged to see that sales at UPS continued to grow despite signs the economic recovery has hit a soft patch.

"I think people are feeling today that there's still room for revenue growth," he said.

UPS said revenue in the quarter jumped nearly 13% to $12.2 billion.

The Atlanta-based company said it earned $845 million, or 84 cents a share, in the second quarter. That's up from $445 million, or 44 cents a share, a year earlier.

Analysts were expecting earnings of 77 cents per share, according to consensus estimates from Thomson Financial.

Looking ahead, UPS said it expects 2010 earnings to be in a range of $3.35 to $3.45 a share. Analysts had been expecting full-year earnings of $3.27 a share. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,828.24 0.49 0.00%
Nasdaq 4,791.63 4.31 0.09%
S&P 500 2,067.56 -5.27 -0.25%
Treasuries 2.19 -0.04 -1.79%
Data as of 4:04am ET
Company Price Change % Change
Kinder Morgan Inc 41.35 -0.97 -2.29%
Halliburton Co 42.20 -5.14 -10.86%
General Electric Co 26.49 -0.38 -1.41%
Bank of America Corp... 17.04 -0.07 -0.41%
Apple Inc 118.93 -0.07 -0.06%
Data as of Nov 28

Sections

Union-backed demonstrators are protesting outside some Walmart stores Friday, asking the company to pay workers at least $15 an hour. More

From their smartphones, tablets or laptops -- and the comfort of the living room or Thanksgiving dinner table -- Black Friday shoppers could find deals all week that rivaled the in-store doorbusters. More

Natalie's Cakes and More has raised $84,000 through GoFundMe after protests trash store. More

Retailers are promising big deals this Black Friday, but are the savings actually worth the shopping mayhem? Test your deal-sniffing skills. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.