April 26 United Parcel Service's higher
quarterly profit missed forecasts, as lower-margin e-commerce
drove domestic volume and volume remained weak out of Asia,
sending shares down 3 percent in pre-market trading Thursday.
The world's largest package delivery company on Thursday
reported that net earnings rose 6 percent to $970 million, or
$1.00 per share in the first quarter, from $915 million, or 91
cents a share, a year earlier.
Analysts had expected profit of $1.02 per share, on average,
according to Thomson Reuters I/B/E/S.
"Increases in revenue per piece caused by higher base rates
and fuel surcharges were mostly offset by changing product and
customer mix as lower-margin e-commerce continued to drive
volume growth" in the domestic business, UPS said.
In the international segment, UPS said weakness out of Asia
and increased intra-regional volumes hurt revenue per piece.
Total revenue rose 4.4 percent to $13.14 billion, just shy
of the $13.26 billion average forecast according to Thomson
UPS maintained its full-year guidance of $4.75 to $5.00
earnings per share.
Domestic revenue rose 6.2 percent and international revenue
increased 2.3 percent.
The company's stock dropped 3 percent in pre-market trading
to $77.29 a share.