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.
Source URL: http://investorplace.com/2012/07/ups-falls-short-in-q2-trims-2012-outlook/
Short URL: http://investorplace.com/?p=202622
Copyright ©2013 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.