UPS is pre-announcing their earnings this evening and the numbers reflect the environment of “better than expected” earnings that we largely expect throughout the next few weeks. EPS totaled $0.71 versus expectations of $0.58. Despite the 33% jump in profit, revenues remain meager at just 7% year over year growth.
Kurt Kuehn, UPS’s chief financial officer says the recovery is gathering steam:
“We expected the first quarter to be the most challenging of 2010 as the economic recovery gathered steam through the year. As it turned out, revenue was stronger than we expected due to international volume gains, increased yields in the U.S. and growth in Forwarding and Logistics. Also, the operating leverage in our streamlined network provided higher margins than anticipated.”
They are also raising their full year guidance:
As a result of the strong earnings for the first quarter and an improved outlook for the remainder of the year, UPS has increased its expectations for full-year adjusted diluted earnings to a range of $3.05 to $3.30 per share, a significant increase over the $2.70 to $3.05 provided in February.
The positive earnings news continues….