NEW YORK (CNN/Money) -
United Parcel Service posted slightly lower first-quarter earnings Thursday that beat the company's own guidance to Wall Street.
The Atlanta-based package delivery company posted net income of $563 million, or 50 cents a share. Its earlier guidance had been between 40 and 47 cents a share, leading analysts surveyed by earnings tracker First Call to forecast 47 cents. The company earned $582 million, or 51 cents excluding special items, in the year-earlier period.
The world's largest transportation company had revenue of $7.58 billion, edging both First Call's forecast of $7.55 billion and year-earlier revenue of $7.44 billion. Revenue from both domestic and international package deliveries fell just less than 2 percent, but revenue from non-package business, such as customs clearance, supply chain management and other services, gained 61 percent to $622 million, lifting overall revenue.
The company maintained its second-quarter earnings guidance of 50 to 55 cents a share. First Call's EPS forecast for the period is 54 cents, down from 55 cents a year earlier. The company said the state of the U.S. economy as well as ongoing contract talks with the International Brotherhood of Teamsters could affect results.
The Teamsters' contract isn't due to expire until 12:01 a.m. ET on Aug. 1, but UPS customers could start shifting business as soon as the second quarter if they are concerned a strike is possible. Chief Financial Officer Scott Davis said in the earnings statement the company remains confident it can reach an agreement with the union without a strike.
| |
Related stories
| |
| | |
| | |
|
UPS also said it has filed a potential offering of up to 30 million shares of stock to be sold to index mutual funds in the event the company is added to the Standard & Poor's 500 index . Most of the 1.1 billion UPS shares outstanding are held by its employees and retirees.
"While the company has no reason to believe such a step is imminent, its addition to the S&P 500 index would create an immediate demand for substantial additional stock," the company said. "A secondary offering under this registration statement could help meet a portion of that demand."
Click here for a look at transportation stocks
Shares of UPS (UPS: Research, Estimates) lost 5 cents to $60.90 Wednesday.
|
