UPS Profit, Revenue Grow, but Short of Estimates
United Parcel Service reported quarterly earnings and revenue that improved over the past year butmissed analysts' forecasts, sending its shares lower on Thursday.
The shipping company posted first-quarter earnings excluding items of$1 per share, up from 88 cents a share last year.
Analysts expected the company to report earnings excluding items of $1.02 a share on $13.27 billion in revenue, according to a consensus estimate from Thomson Reuters.
UPS revenue was $13.1 billion, an increase from $12.58 billion the year before.
UPS shares fell more than 3 percent in Thursday trading after the announcement.
"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.
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.
Reuters contributed to this report.