(Reuters) – United Parcel Service Inc reported a better-than-expected quarterly profit, as the company benefited from record volumes during the crucial holiday season.
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Shares of the world’s biggest package delivery company rose nearly 6 percent to $107.06 in early trading.
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The company successfully executed “transformation investments and initiatives that lifted revenue quality and improved efficiency,” Chief Executive Officer David Abney said in a statement.
UPS results comes just a month after rival FedEx Corp slashed its forecast for fiscal 2019 ending May, citing a global trade slowdown.
“Our broad portfolio, diverse revenue base and flexible network help buffer the impacts of global economic softening,” Abney added.
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The company said it expects 2019 earnings per share between $7.45 and $7.75, which is largely below analysts’ average estimate of $7.69 per share, according to IBES data from Refinitiv.
Net income fell to $453 million, or 52 cents per share, in the fourth quarter ended Dec. 31 from $1.10 billion, or $1.26 per share, a year earlier.
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The latest quarter included a $1.24 billion after-tax pension charge. UPS earned $1.94 per share on an adjusted basis, above analysts’ expectation of $1.90 per share.
Revenue rose to $19.85 billion from $18.98 billion.
(Reporting by Lisa Baertlein in Los Angeles and Ankit Ajmera in Bengaluru; Editing by Anil D’Silva)
