This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

UPS: What to Do With Cash Pile?

Stocks in this article: UPS

Looking ahead, UPS said it expects to earn between $2.70 and $3.05 a share in the current year, an increase of 17% to 32% over 2009 results. Analysts were estimating $2.81. In 2010, "we see a story of a gradually firming economy with pricing for UPS continuing to get stronger and stronger, and ultimately this restructuring (savings) beginning to kick in late this year," Kuehn said.

Still, UPS is cautious on the first quarter. Why? Because companies that print money know they can afford to be conservative. In this case, UPS has chosen not to extrapolate all of its fourth-quarter gains into the first quarter.

"Momentum may slow a bit" after a surprising December uptick that included a holiday rush with eight days of transporting more than 22 million packages, Kuehn said. Additionally, it is unclear whether unprecedented demand in Asia will continue.

In the fourth quarter, net income was $757 million or 75 cents a share. Analysts surveyed by Thomson Reuters had estimated 74 cents. Revenue declined 2.5% to $12.38 billion. Analysts had estimated $12.2 billion. UPS pre-reported on Jan. 8 that it would earn between 73 cents and 75 cents a share. Its original guidance was 58 cents to 65 cents a share. In the same quarter a year earlier, UPS earned $254 million or 25 cents a share.

Standard & Poor's analyst Jim Corridore reiterated a buy on UPS Tuesday, saying "with lower capex over the next few years, UPS should generate significant free cash, which we think will lead to increased share repurchase activity." Shortly before midday, UPS stock was trading up 18 cents at %58.57.

-- Written by Ted Reed in Charlotte, N.C. .

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs