Strong Shipments Boost UPS’s International Revenues in 4Q16
UPS expects its International segment’s revenues to grow 2%–4% in 2017.
In 4Q16, UPS’s International segment’s revenue rose 2.6% to ~$2.7 billion from ~$2.6 billion in 4Q15.
In 4Q16, United Parcel Service (UPS) just missed analysts’ revenue estimates by 0.5%.
In 4Q16, UPS’s Ground Service revenues saw remarkable growth, rising 7.1% on a year-over-year basis—the highest among all three subsegments.
United Parcel Service (UPS) reported its 4Q16 earnings on January 31, 2017. The parcel delivery giant reported a loss of $0.27 per share in 4Q16.
Of the 26 analysts covering FedEx stock, 19 analysts have now issued a “buy,” as compared to 17 analysts advising a “buy” before the fiscal 2Q17 results.
In fiscal 2Q17, FedEx (FDX) paid a quarterly cash dividend of $0.4 per share, which represents a rise of 60% on a yearly basis.
In fiscal 2Q17, FedEx (FDX) incurred a capital expenditure of ~$1.5 billion, which represents 9.8% of its total revenues of $14.9 billion for the quarter.
FDX plans to integrate TNT Express over the course of four years through a series of restructuring.
In fiscal 2Q17, FedEx’s (FDX) overall operating margin on a reported basis was 7.8%, as compared to 9.1% in fiscal 2Q16.
FedEx’s (FDX) Ground segment revenues rose 9.1% from $4.0 billion in fiscal 2Q16 to $4.4 in fiscal 2Q17.
In fiscal 2Q17, FedEx’s (FDX) Freight segment revenues rose 3.2% YoY to $1.59 billion, as compared to $1.54 billion in fiscal 2Q16.
In fiscal 2Q17, FedEx’s (FDX) Express segment reported revenues of $6.7 billion, as compared to $6.5 billion in 2Q16, which indicates a YoY rise of 2.4%.
For fiscal 2Q17, FedEx (FDX) reported adjusted EPS of $2.8, as compared to the consensus estimate of $2.9 per share, missing its earnings target by 3.4%.
FedEx’s (FDX) management is aiming to raise EPS 10.0%–15.0% every year. It’s bullish on e-commerce and global trade growth in the next couple of years.
Analysts surveyed by Reuters are expecting an operating margin of 8.9% for FedEx (FDX) in fiscal 2Q17 against an actual margin of 9.1% in fiscal 2Q16.
Analysts surveyed by Reuters have a revenue estimate of $14.8 billion in fiscal 2Q17 for FedEx (FDX). That’s a rise of 20.0% compared to fiscal 2Q16.
FedEx (FDX) is set to report earnings after the market closes on December 20, 2016, at 4:15 PM EST. The report will be for fiscal 2Q17, which ended November 30, 2016.
The analysts are estimating EPS of $1.44 for United Parcel Service (UPS). In the same period last year, UPS’s EPS was $1.39, representing a slight rise.
Out of 23 analysts covering UPS’s stock, seven (30.4%) analysts have issued a “buy” recommendation, while 15 (65.2%) have issued “hold” recommendations.