April 26 (Reuters) - 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 Reuters I/B/E/S.
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.