UPS Q2 Profit Surges 26%, but Forecast Could Miss (UPS)
Package delivery giant United Parcel Service, Inc. ( UPS ) on Tuesday posted a 26% gain in second quarter profits, but backed its full-year outlook, which could miss analyst expectations.
The Atlanta-based company reported second quarter net income of $1.06 billion, or $1.07 per share, compared with $845 million, or 84 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was $1.05 per share.
Revenue rose 8% from last year to $13.2 billion.
On average, Wall Street analysts expected a slightly smaller profit of $1.04 per share, on lower revenue of $13.1 billion.
Looking ahead, the company backed its previously-announced full-year earnings forecast for profits ranging from $4.15 to $4.40 per share, which could miss analyst estimates of $4.34.
UPS shares fell 55 cents, or -0.7%, in premarket trading Tuesday.
The Bottom Line
Shares of United Parcel Service ( UPS ) have a 2.81% dividend yield, based on last night's closing stock price of $74.05. The stock has technical support in the $68-$70 price area. If the shares can firm up, we see overhead resistance around the $76-$79 price levels.
United Parcel Service, Inc. ( UPS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.