2017-07-26 13:50:51 | On The Fly: What to watch in UPS earnings reportUPS (UPS) is scheduled to report results of its second fiscal quarter before the market open on Thursday, April 27, with a conference call scheduled for 8:30 am ET. What to watch for: 1. GUIDANCE: When UPS reported its first quarter results on April 29, it reaffirmed its fiscal 2017 adjusted earnings per share guidance of $5.80-$6.10. At that time, consensus estimates were $5.95. The guidance includes more than $400M, or 30c per share of pre-tax currency headwinds. UPS CFO Richard Peretz said, "Our current momentum, combined with accelerated investment initiatives gives us confidence in our ability to attain our full-year guidance." 2. FEDEX RESULTS: On June 20, FedEx (FDX) reported fourth quarter adjusted EPS of $4.25 and revenue of $15.7B against analyst expectations of $3.88 and $15.56B, respectively. FedEx also reported Q4 adjusted operating margin of 11.2% vs. 11.7% last year. The company noted, "Operating results benefited from higher base rates, increased package volume and the inclusion of TNT Express results. Net income and earnings per share reflect tax benefits of $104M, or $0.37 per diluted share, related to the implementation of new foreign currency tax regulations, the adoption of a new accounting standard for share-based payments, and certain transactions related to the TNT Express integration." 3. NOTABLE INVESTMENTS: On May 26, UPS and SF Holding, the parent company of SF Express, announced plans to establish a joint venture and collaborate to develop and provide international delivery services initially from China to the U.S., with expansion plans for other destinations. On June 1, the company announced plans for a new package processing hub in Goodyear, Arizona. "The phased hub construction modifies a 618,000 square foot structure on 140 acres in the PV303 Development. A portion of the building is expected to begin operating later this year in time for the busy holiday season." On June 13, the company announced plans for a new $260M package processing facility in Plainfield, Indiana. On June 19, the company announced plans for a new Boeing (BA) and UPS announced an order at the 2017 Paris Air Show to convert three 767 passenger airplanes into Boeing Converted Freighters. | |
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