After the DJIA climbs 103points in today's session, those betting against this market take another hit in after hours trading, as UPS pre-announces a big upside earnings surprise....
UPS shares are up 4% after hours, here are some details from the earnings release, in which they guide q1 2010 adjusted EPS to 71 cents, versus the 58cents expected by Wall Street. Revenue came in higher than the company had expected, and they are taking full year guidance up 10%...
From the release:
Consolidated revenue for the period grew 7%, driven by increases of 18% in International Package and 14% in Supply Chain and Freight. International daily volumes grew significantly with export up more than 9% and non-U.S. domestic up over 24%. U.S. Domestic daily volume increased less than 1%, the first year-over-year growth in more than two years.
“We expected the first quarter to be the most challenging of 2010 as the economic recovery gathered steam through the year,” said Kurt Kuehn, UPS’s chief financial officer. “As it turned out, revenue was stronger than we expected due to international volume gains, increased yields in the U.S. and growth in Forwarding and Logistics. Also, the operating leverage in our streamlined network provided higher margins than anticipated.”
As a result of the strong earnings for the first quarter and an improved outlook for the remainder of the year, UPS has increased its expectations for full-year adjusted diluted earnings to a range of $3.05 to $3.30 per share, a significant increase over the $2.70 to $3.05 provided in February.As this was widely expected to be the roughest 2010 quarter for the company, we could see more upside to full year numbers. The upside for these shares is clear, as full year 2010 guidance is already approaching the level of earnings Wall Street expects.......in 2011!
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