Services

UPS Earnings Could Deliver a New All-Time High Stock Price

UPS plane
Courtesy United Parcel Service Inc.
United Parcel Service Inc. (NYSE: UPS) reported third-quarter 2013 results before markets opened Friday morning. The package delivery giant posted adjusted diluted earnings per share (EPS) of $1.16 on revenues of $13.52 billion. In the same period a year ago, the company reported EPS of $1.06 on revenues of $13.07 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for $1.15 EPS and $13.6 billion in revenues.

UPS reiterated its full-year EPS guidance of $4.65 to $4.85. The company cut its EPS guidance in July, sending the stock down nearly 6%. UPS is “confident” that its fourth-quarter business will not suffer from a lack of consumer confidence or spending, citing “robust online sales” as a reason for its optimism.

The company’s CEO said:

We are making investments in emerging markets, healthcare distribution and our worldwide retail delivery models, ensuring that UPS delivers both the solutions customers require and the returns our shareowners expect.

Domestic package service operating revenue rose nearly 16% to $1.2 billion and operating margin rose by 140 basis points to 14.4%. International revenue rose 2.5% to $3 billion in the quarter, but operating profit fell by around 7%.

UPS delivered an average of 16.2 million packages a day in the fourth calendar quarter of 2012, but has not offered an estimate of what it expects to deliver this year. Rival FedEx Corp. (NYSE: FDX) said last week that it expects to handle 22 million packages on December 2 (Cyber Monday) this year, its busiest day ever.

UPS shares were up about 2.4% in premarket trading to $96.74, well above the top of the company’s 52-week range of $69.56 to $95.40. Thomson Reuters had a consensus analyst price target of around $96.60 before this report.

Credit Card Companies Are Doing Something Nuts

Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.

It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.

We’ve assembled some of the best credit cards for users today.  Don’t miss these offers because they won’t be this good forever.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.