Investing.com - Global shipping giant United Parcel Service (NYSE:UPS) reported third-quarter revenue that fell short of forecasts, sending its shares lower on Wednesday.
UPS said that adjusted earnings per share came in at $1.82, which was in line with expectations. The company’s third-quarter revenue totaled $17.44 billion, missing forecasts for revenue of $17.49 billion, as currency exchange rates weighed.
U.S. domestic package revenue growth of 8.1% to $10.44 billion was above the consensus of $10.35 billion, but the 3.0% increase in international package revenue to $3.48 billion missed expectations of $3.66 billion.
Following the release of the report, shares in UPS fell 1.9%.
As previously guided, UPS expects fourth-quarter adjusted EPS to increase about 15%, despite anticipated currency headwinds in emerging markets and one less operating day during peak season.
For 2018, the company expects adjusted EPS of $7.03 to $7.37, compared to expectations for full-year earnings of $7.25 per share.
"Improvements in revenue quality and our new, highly-automated capacity gives us confidence in a successful peak season for our customers and shareowners,” said Richard Peretz, UPS’s chief financial officer.
For the year, United Parcel Service (NYSE:UPS) shares are down 4.83%, under-performing the S&P 500 which is up 2.12% year to date.
United Parcel Service follows other major Transportation sector earnings this month
On Tuesday, Canadian National Railway reported third quarter EPS of $1.54 on revenue of $3.69B, compared to forecasts of EPS of $1.12 on revenue of $3,562M.
CSX (NASDAQ:CSX) earnings beat analyst's expectations on October 16, with third quarter EPS of $1.05 on revenue of $3.13B. Investing.com analysts expected EPS of $0.93 on revenue of $3.03B
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