I believe we will make our numbers on the high side of the range, show that volume is returning, albeit slowly, from the strike threat, show good growth in Air, Intl and Logistics. Above all, however, we will show an amazing ability to manage costs and planned expenditures. The future is very bright.
How the quarter is presented will be important to short term shareholders. For us longs, the fact the shippers diverted in Jun/July will have minimal material affect. I think volume has picked up substantially in Sept and will continue through Dec...hope the weather holds out...
.51 per share, .03 below consensus. Combine that with lowered guidance with the upper range .01 below current 4th quarter consensus and we're in for a rough day. At least MIP recipients will get a lower price when shares are alotted. Gotta look at the bright side.
United Parcel Service Inc. (UPS) slipped to $62.70 on Instinet, from its close at $64.18, after the the world's No. 1 package carrier posted a rise in quarterly profits on increasing revenues and cost-cutting. Still, those profits missed consensus forecasts of 54 cents a share.
I think domestic volume continues to suffer.
Alot of people in here underestimate FDX ground.
I don't. They continue to take away volume from
UPS. UPS was built on domestic ground, and our
base is being dented and chipped by the competition.
I don't think that you can blame the higher pay scale at UPS for the weak economy. We're not the only ones that are struggling, in fact UPS has held up relatively well in comparison with the overall market.
The union's posturing cost us some business as customers moved over to competitors. The irony with the union's strategy is that their scare tactics lose volume which is required to create the additional union jobs that they say that they want so badly. It's a predictable sequence of events at contract time. Maybe next time they will be a little more sophisticated and stop waving their guns in the air to avoid shooting themselves in the foot.
The company is clever to predict lower numbers for the holiday season, then anything over that will be a "surprise" and boost both the immediate stock price but more importantly the analysts opinions.
UPS's honest appraisal of our 4th Q prospects have further drawn down our stock price. Unfortunately, if the ANALysts don't lower their expectations to meet our estimate, we will see the same major hit in 3 months.