UPS Invests in Future ... Disappoints Short-term Investors

Catatonic

Nine Lives
UPS Makes Shareholders Wait to Celebrate - Bloomberg

The company needs to devote some of its tax windfall to network upgrades, but investors are right to be wary.

United Parcel Service Inc. is doing right by President Donald Trump's standards, but that's hardly what shareholders want to see right now.

The delivery company's predominantly U.S.-focused business and high effective tax rate had Wall Street eyeing a cash and profit windfall as the recently passed tax cuts take hold. But a joyous announcement akin to rival FedEx Corp.'s December estimate of an extra $1 billion in profit this year was not to be. Instead, UPS on Thursday said it would funnel a large chunk of the extra resources back into capital expenditures to help adapt its network to the deluge of e-commerce shipments. Its 2018 guidance was also well short of analysts' expectations even at the high end of the range.

Shareholders were unimpressed.
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It's about time the company starts doing the right thing. That's what they used to do. Take care of business and the shareholders will eventuality be rewarded.
 

Catatonic

Nine Lives
It's about time the company starts doing the right thing. That's what they used to do. Take care of business and the shareholders will eventuality be rewarded.
I think it is cool that UPS made a great investment in it's future rather than selling out to the Big Time investors that ran up the stock price in anticipation of a huge dump into dividends.

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Turdferguson

Just a turd
UPS Makes Shareholders Wait to Celebrate - Bloomberg

The company needs to devote some of its tax windfall to network upgrades, but investors are right to be wary.

United Parcel Service Inc. is doing right by President Donald Trump's standards, but that's hardly what shareholders want to see right now.

The delivery company's predominantly U.S.-focused business and high effective tax rate had Wall Street eyeing a cash and profit windfall as the recently passed tax cuts take hold. But a joyous announcement akin to rival FedEx Corp.'s December estimate of an extra $1 billion in profit this year was not to be. Instead, UPS on Thursday said it would funnel a large chunk of the extra resources back into capital expenditures to help adapt its network to the deluge of e-commerce shipments. Its 2018 guidance was also well short of analysts' expectations even at the high end of the range.

Shareholders were unimpressed.
headshake.gif
 

Turdferguson

Just a turd
It wasn't moved, it was copied to the UPS Discussion forum.
TTKU
Cant come up with your own ideas for a thread so you steal @cheryl thread?


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