United Parcel Service Jumps After Delivering Strong Quarterly Earnings

United Parcel Service Inc. (UPS) - Get Report shares rose 4.2% to close at $105.40 in Thursday trading after the package delivery company reported fourth-quarter results that topped Wall Street expectations. 

The Atlanta-based company reported fourth-quarter earnings of $1.94 a share, a 17% year-over-year increase, on revenue of $19.85 billion. Analysts expected earnings of $1.91 a share on revenue of $19.92 billion.

"We achieved our 2018 adjusted earnings-per-share goal by successfully executing Transformation investments and initiatives that lifted revenue quality and improved efficiency," said David Abney, UPS chairman and CEO. "Our diverse portfolio, global footprint and flexible network position UPS for profitable growth in 2019 and beyond."

For the year, the company reported a 7.9% increase in revenue while achieving record shipments. The company delivered more than 21 million packages per day, on average, in 2018. Internationally, the company reported a 2.9% increase in revenue with 6.3% growth in operating profit. 

For fiscal 2019, UPS expects to earn between $7.45 and $7.75 a share - Wall Street is calling for $7.69 a share. That estimate includes pension financing cost headwinds of about $325 million, the company said. 

"UPS executed very well during the quarter in a challenging environment," said Richard Peretz, UPS chief financial officer. "In 2019, we plan to generate substantial increases in operating profit growth in all three business units."

Score a Touchdown with Jim Cramer's Big Game Special

Get access to the best stock picks in Jim Cramer's investment portfolio by executing a two-minute drill on our Big Game Special on Action Alerts PLUS, Jim's VIP club for investors. Sign up now through Feb. 4 and receive 58% off the normal subscription price. Now that's a real touchdown!