by Christopher Freeburn | July 24, 2012 11:53 am
United Parcel Service (NYSE:UPS) said on Tuesday that its second-quarter earnings increased to $1.12 billion, up from $1.092 billion during the same time last year.
Revenue for the logistics and shipping company increased to $13.35 billion, up from $13.19 billion in 2011. That disappointed Wall Street, which had been looking for $13.7 billion, Reuters noted.
Adjusted EPS for the second quarter was $1.15, up 7.5% from $1.07 last year, but falling short of analysts who had predicted $1.17.
Investors were unhappy with the results, sending UPS shares down more than 5% in Tuesday morning trading.
UPS also cut is outlook for 2012, saying it now expects earnings per share of between $4.50 and $4.70. That is down from an earlier forecast of between $4.75 and $5.00 a share.
Company officials attributed the diminished outlook to rising concerns over a weakening U.S. economy, the ongoing European economic crisis, and slowing exports from Asia.
UPS’s European presence is increasing due to its acquisition of the Netherlands-based TNT Express.
Analysts cited by Reuters attributed the missed quarterly forecasts and lowered outlook to reduced international freight shipping.
Last month, shipping rival FedEx (NYSE:FDX) posted lower earnings for its fiscal fourth quarter that still beat Wall Street forecasts, but lowered its outlook for the current fiscal year due to the worsening global slowdown.
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