Quarterly revenue decreased to $14.2 billion, trailing the $14.4 billion average of estimates compiled by Bloomberg.
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UPS said it plans to deliver about 36 million packages on Tuesday, December 22, up from 35 million a year ago, and double the normal daily average of 18 million deliveries.
United Parcel Service Inc.’s stock (UPS) dropped 1.1% in premarket trade Tuesday, after the package delivery company beat third-quarter profit expectations, but missed on sales.
The slip in revenue marked the second drop in a row for the company, which had reported sales gains for the previous 10 quarters.
UPS (NYSE:UPS) expects to deliver more than 630 million packages between Black Friday and New Year’s Eve, an increase of more than 10 percent over holiday deliveries last year. UPS expects that residential deliveries, which are more costly, will be a higher percentage of its business than during the rest of the year.
The results come as UPS heads into the holiday peak season, and the company is working to keep its expenses in check.
“Beyond new processing facilities, automation and routing technology to increase capacity, we’ve implemented easy-to-use mobile and web-based technology that helps consumers to track progress and customize their delivery so they can plan when and where they receive packages”, he continued.
UPS said it earned $1.39 per share. That topped the FactSet earnings-per-share consensus of $1.37.
Revenue, however, dipped to $14.24 billion. Analysts had expected revenue for the quarter of US$14.43 billion.
Last year, the company overcompensated and spent too much planning for packages that never materialized, hurting fourth-quarter earnings.
Holiday hiring will be about 95,000 seasonal workers, matching 2014’s level, UPS said.
Chief financial officer Richard Peretz said the company expected full-year earnings to be at the higher end of its forecast of $5.05 to $5.30 per share, which would indicate an increase of between 6 percent and 12 percent over 2014.
In pre-market trading, UPS shares were down 3 percent at US$103.
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UPS shares have fallen 4.5 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen almost 1 percent.
