More Macro Headwinds as UPS Joins Earnings Warning Confession Booth (UPS, FDX)
United Parcel Service, Inc. (NYSE: UPS) is joining the flow of big important companies reporting disappointing earnings. While the earnings were up 7.5% from a year ago, the 2012 guidance is suggesting even more slowing than had been anticipated. The…
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What is going to disappoint more than today’s report is the guidance. UPS now sees earnings at $4.50 to $4.70 per share, which is well under the consensus of $4.83 EPS from Thomson Reuters. The company is blaming an increasing uncertainty in the United States, as well as the ongoing themes reported by many companies, such as weakness in Asia exports and the debt crisis in Europe.
UPS still expects to close on the TNT Express acquisition during the fourth quarter of this year. Now the company just has to hope that oil prices do not rise too much against it.
UPS shares are down 3.2% at $75.42 in the early trading indications against a 52-week range of $60.74 to $81.79.
Rival FedEx Corporation (NYSE: FDX) is down another 2.3% this morning after its earnings had already been reported. In recent days it has seen its shares drop from about $93 down to $89.26 at Monday’s closing bell price.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
