Stock Monitor: Air T Post Earnings Reporting
LONDON, UK / ACCESSWIRE / November 27, 2017 / Active-Investors free earnings report on United Parcel Service, Inc. (NYSE: UPS) has freshly been issued to its members, and you can also 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 third quarter of the fiscal year 2017. The Company's earnings per share (EPS) was in-line with analysts' expectations. Register today and get free access toour complimentary member’s area where many more reports are available: www.active-investors.com/registration-sg.
Active-Investors.com is currently working on the research report for Air T, Inc. (NASDAQ: AIRT), which also belongs to the Services sector as the Company United Parcel Service. Do not miss out and become a member today for free to access this upcoming report at: www.active-investors.com/registration-sg/?symbol=AIRT.
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, United Parcel Service most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at: www.active-investors.com/registration-sg/?symbol=UPS.
Earnings Highlights and Summary
For the three months ended September 30, 2017, United Parcel's revenues increased 7%, or 7.1% on a constant currency basis, to $15.98 billion from $14.93 billion in Q3 FY16. For the 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 surpassed analysts' expectations of $15.6 billion.
For the reported quarter, United Parcel's compensation and benefits expenses increased 4.6% to $8.22 billion from $7.86 billion in Q3 FY16. During Q3 FY17, the Company's D&A expenses increased 3.2% to $572 million from $554 million in the same period of last year.
During Q3 FY17, United Parcel's operating income increased 0.5% to $2.04 billion from $2.03 billion in the comparable period of last year. The increase was due to strong performances in the International and Supply Chain and Freight segments. During Q3 FY17, the Company's operating margin decreased 90 basis points to 12.7% of revenue from 13.6% of revenue in Q3 FY16.
For the reported quarter, United Parcel's net income decreased 0.5% to $1.26 billion from $1.27 billion in 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 period of last year. The diluted EPS was in-line with analysts' expectations of $1.45.
US Domestic - During Q3 FY17, United Parcel's US Domestic segment's revenue increased 3.9% to $9.65 billion from $9.29 billion in the same period of last year. The increase was due to online retail customer demand 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 $1.25 billion in Q3 FY16. For the reported quarter, the segment's operating margin decreased 130 basis points to 12.2% of revenue from 13.5% of revenue in the third quarter of 2016.
International - During Q3 FY17, United Parcel's International segment's revenue increased 11.2% to $3.36 billion from $3.02 billion in the comparable period of last year. 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, the segment's operating margin decreased 40 basis points to 18.6% of revenue from 19.0% of revenue in the third quarter of 2016.
Supply Chain and Freight - During Q3 FY17, United Parcel's Supply Chain and Freight segment's revenue increased 13.4% to $2.97 billion from $2.62 billion in the corresponding period of last year. The increase was due to deeper alignment with preferred customers, strengthened revenue management initiatives, and improved market conditions. For the reported quarter, the segment's operating income increased 9.7% to $226 million from $206 million in Q3 FY16. For the reported quarter, the segment's operating margin decreased 30 basis points to 7.6% of revenue from 7.9% of revenue in the third quarter of 2016.
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's long-term debt increased 15.9% to $14.36 billion from $12.39 billion in Q4 FY16.
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, the Company's accounts payable decreased 7.6% to $2.81 billion from $3.04 billion in Q4 FY16.
During FY17, the Company's YTD cash provided by operating activities decreased 17.5% to $4.42 billion from $5.36 billion in the same period of last year.
On November 02, 2017, the Company'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.
For FY17, United Parcel expects adjusted diluted EPS to be in the range of $5.85 - $6.10.
Stock Performance Snapshot
November 24, 2017 - At Friday's closing bell, United Parcel Service's stock slightly dropped 0.55%, ending the trading session at $113.14.
Volume traded for the day: 891.72 thousand shares.
Stock performance in the last six-month – up 6.87%
After last Friday's close, 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 dividend yield of 2.93%.
The stock is part of the Services sector, categorized under the Air Delivery & Freight Services industry. This sector was up 0.2% at the end of the session.
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