UPS profit hurt by severe weather, issues disappointing outlook for second quarter; shares sink - Reuters
United Parcel Service Inc on Thursday blamed harsh winter weather in the United States as it reported lower-than-expected first-quarter profit, sending shares down more than 7% percent in early trading.
Despite the rough start to the year, the world’s biggest package delivery company stuck by its forecast for 2019 earnings of $7.45 to $7.75 per share. That raises the pressure for Atlanta-based UPS, which is spending billions of dollars to modernize its network, to meet its targets during this year’s key winter holiday season.
“There is pressure on management to execute at a high level during the peak,” Cowen and Co. analyst Helane Becker said in a client note.
United Parcel Service Inc on Thursday blamed harsh winter weather in the United States as it reported lower-than-expected first-quarter profit, sending shares down more than 7% percent in early trading.
Despite the rough start to the year, the world’s biggest package delivery company stuck by its forecast for 2019 earnings of $7.45 to $7.75 per share. That raises the pressure for Atlanta-based UPS, which is spending billions of dollars to modernize its network, to meet its targets during this year’s key winter holiday season.
“There is pressure on management to execute at a high level during the peak,” Cowen and Co. analyst Helane Becker said in a client note.