UPS Inc. (NYSE:UPS) posted a slight gain in profits although the $1.05 EPS before charges was ahead of the $1.02 estimate. After charges, the transportation and freight giant posted $1.02 EPS. Revenues were up 4.7% to $12.21 Billion.
The company is stating that it expects slowing retail sales will restrain U.S. domestic volume growth. It also narrowed its guidance, still within prior guidance, to a range of $4.13 to $4.19 EPS. First Call has estimates at $4.15.
While there is at least some caution, there has to be a sigh of relief that the slowdown expected isn’t being described as worse. The fact that fuel hasn’t eaten it alive more than it has is pretty amazing as well. Shares are indicated up at $75.75 on thin volume, after closing at $75.09 yesterday.
Jon C. Ogg
October 23, 2007