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Free Post Earnings Research Report: United Parcel Services' Revenue Grew 7%
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StockMonitor: Air T Post Earnings Reporting
LONDON, UK / ACCESSWIRE / November 27,2017 / Active-Investors free earnings report on United ParcelService, Inc. (NYSE: UPS) has freshly been issued to its members, and you canalso sign up to view this report at www.active-investors.com/registration-sg/?symbol=UPS.The Company posted its financial results on October 26, 2017, for the thirdquarter of the fiscal year 2017. The Company's earnings per share (EPS) wasin-line with analysts' expectations. Register today and get free access toourcomplimentary member's area where many more reports are available: www.active-investors.com/registration-sg.
Active-Investors.com is currentlyworking on the research report for Air T, Inc. (NASDAQ: AIRT), which alsobelongs to the Services sector as the Company United Parcel Service. Do notmiss out and become a member today for free to access this upcoming report at: www.active-investors.com/registration-sg/?symbol=AIRT.
Active-Investors.comis focused on giving you timely information and the inside line on companiesthat matter to you. This morning, United Parcel Service most recent news is on our radar and we have decided to include it onour blog post. Today's free coverage is available at: www.active-investors.com/registration-sg/?symbol=UPS.
EarningsHighlights and Summary
For the three monthsended September 30, 2017, United Parcel's revenues increased 7%, or 7.1% on aconstant currency basis, to $15.98 billion from $14.93 billion in Q3 FY16. Forthe reported quarter, the Company's average revenue per piece increased 2.7% to$10.77 from $10.49 in the third quarter of 2016. The revenue figures surpassedanalysts' expectations of $15.6 billion.
For the reported quarter,United Parcel's compensation and benefits expenses increased 4.6% to $8.22billion from $7.86 billion in Q3 FY16. During Q3 FY17, the Company's D&Aexpenses increased 3.2% to $572 million from $554 million in the same period oflast year.
During Q3 FY17, UnitedParcel's operating income increased 0.5% to $2.04 billion from $2.03 billion inthe comparable period of last year. The increase was due to strong performancesin the International and Supply Chain and Freight segments. During Q3 FY17, theCompany's operating margin decreased 90 basis points to 12.7% of revenue from13.6% of revenue in Q3 FY16.
For the reported quarter,United Parcel's net income decreased 0.5% to $1.26 billion from $1.27 billionin Q3 FY16. During Q3 FY17, the Company's diluted earnings per share (EPS)increased 0.7% to $1.45 on a y-o-y basis from $1.44 in the corresponding periodof last year. The diluted EPS was in-line with analysts' expectations of $1.45.
SegmentDetails
USDomestic - During Q3 FY17, United Parcel's USDomestic segment's revenue increased 3.9% to $9.65 billion from $9.29 billionin the same period of last year. The increase was due to online retail customerdemand for both UPS Next Day Air and Ground services. For the reported quarter,the segment's operating income decreased 5.6% to $1.18 billion from $1.25billion in Q3 FY16. For the reported quarter, the segment's operating margindecreased 130 basis points to 12.2% of revenue from 13.5% of revenue in thethird quarter of 2016.
International - During Q3 FY17, United Parcel's International segment's revenue increased11.2% to $3.36 billion from $3.02 billion in the comparable period of lastyear. For the reported quarter, the segment's operating income increased 8.9%to $627 million from $576 million in Q3 FY16. The increase was due to broad,accelerated growth combined with expanded yields. For the reported quarter, thesegment's operating margin decreased 40 basis points to 18.6% of revenue from19.0% of revenue in the third quarter of 2016.
SupplyChain and Freight - During Q3 FY17, United Parcel's SupplyChain and Freight segment's revenue increased 13.4% to $2.97 billion from $2.62billion in the corresponding period of last year. The increase was due todeeper alignment with preferred customers, strengthened revenue managementinitiatives, and improved market conditions. For the reported quarter, thesegment's operating income increased 9.7% to $226 million from $206 million inQ3 FY16. For the reported quarter, the segment's operating margin decreased 30basis points to 7.6% of revenue from 7.9% of revenue in the third quarter of2016.
BalanceSheet
As on September 30, 2017,United Parcel's cash and cash equivalents decreased 1.7% to $3.42 billion from$3.48 billion as on December 31, 2016. For the reported quarter, the Company'slong-term debt increased 15.9% to $14.36 billion from $12.39 billion in Q4FY16.
For the reported quarter,the Company's net accounts receivable decreased 9.9% to $6.94 billion from$7.70 billion in the fourth quarter of 2016. For the reported quarter, theCompany's accounts payable decreased 7.6% to $2.81 billion from $3.04 billionin Q4 FY16.
During FY17, theCompany's YTD cash provided by operating activities decreased 17.5% to $4.42billion from $5.36 billion in the same period of last year.
On November 02, 2017, theCompany's Board of Directors declared a dividend of $0.83 per common share,payable on November 29, 2017, to shareholders of record as on November 13,2017.
Outlook
For FY17, United Parcelexpects adjusted diluted EPS to be in the range of $5.85 - $6.10.
Stock Performance Snapshot
November24, 2017 - At Friday's closing bell, United Parcel Service'sstock slightly dropped 0.55%, ending the trading session at $113.14.
Volume traded for theday: 891.72 thousand shares.
Stock performance in thelast six-month – up 6.87%
After last Friday'sclose, United Parcel Service's market cap was at $98.04 billion.
Price to Earnings (P/E)ratio was at 27.79.
The stock has a dividendyield of 2.93%.
The stock is part of the Servicessector, categorized under the Air Delivery & Freight Services industry.This sector was up 0.2% at the end of the session.
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