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.
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email email@example.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.