ATLANTA — UPS’ fourth-quarter profit slipped, hampered by a hefty pension charge. Its adjusted results topped Wall Street’s view, as revenue climbed during the critical holiday shipping period.
Shares rose 5 per cent in Thursday premarket trading.
The package delivery company earned $453 million, or 52 cents per share, for the three months ended Dec. 31. A year earlier the Atlanta-based company earned $1.1 billion, or $1.26 per share.
The current quarter included a $1.24 billion pension charge.
Removing the charge and other items, earnings were $1.94 per share. That easily beat the $1.58 per share analysts surveyed by FactSet predicted.
Revenue climbed to $19.85 billion from $19 billion, supported by health increases in its U.S. domestic and international package segments. Wall Street was calling for $19.97 billion in revenue.
In the U.S. domestic package unit, UPS said that premium next day air revenue grew more than 10 per cent, with volume up 7.8 per cent as customers selected faster delivery options during the holidays.
For 2019, United Parcel Service Inc. anticipates adjusted earnings between $7.45 and $7.75 per share. Analysts expect $7.67 per share.
The Associated Press
