United Parcel (UPS) Q1 Earnings: Disappointment in Store?

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United Parcel (UPS) Q1 Earnings: Disappointment in Store? - NASDAQ

Factors Likely to Influence this Quarter

United Parcel struggled in the most recent holiday season, thanks to higher package delivery costs. The escalated costs are likely to hurt first-quarter 2017 results. Foreign currency-related headwinds are also expected to hurt the first quarter results. Unfavorable product mix and weakness in industrial production may dampen the company's first quarter performance.

However, the company's decision to hike dividend by 6.4% in the first quarter is encouraging. United Parcel's efforts to expand and grow its top line also raise optimism. In a bid to speed up operations in the U.K. and European truckload brokerage operations, the company acquired Freightex Ltd in Jan 2017. The expanded product portfolio might aid first quarter results.
 
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