Shares of United Parcel Service (UPS) - Get Report stalled Tuesday, despite delivering a beat on quarterly earnings, after the transportation giant failed to meet analysts' expectations on quarterly revenue, and said its chief operating officer planned to retire.
The stock price dived 4% to $113.74 a share in trading Tuesday after the package delivery service reported a 13.7% increase in earnings and a 5% rise in revenue to $18.3 billion.
The company reported adjusted EPS of $2.07 a share, a cut above analysts expectations of $2.05. However, revenue rang in at $18.32 billion, just under the $18.35 billion consensus estimate of analysts surveyed by FactSet.
Total delivery volume for its U.S. operations rose 9% across all product lines, UPS said, with Next Day Air Leading the way with a jump of nearly 24%.
Investments in new facilities and automation helped drive the increases, said David Abney, UPS chairman and CEO, in a press statement.
"We see significant near-term benefits to both top- and bottom-line results in the U.S. and continued momentum into the future," Abney said.
Still, international domestic revenue per piece edged down "less than 1%," the company said. Export volume was stagnant between the Asia and the United States, UPS said, a stat that comes with the United States and China locked in a long-running trade war.
Even so, "virtually all Asia trade lanes" except for Asia-U.S. saw increases in export volume, UPS said.
"As we recently announced, we continue to forge new partnerships and create innovative solutions to accelerate growth in the most attractive opportunities," said Abney, UPS' CEO, in a statement.
UPS also announced the pending retirement of Jim Barber, the company's chief operating officer, who began his career in 1985 as a delivery driver. Barber, who will step down in December, is in charge of "global small package, freight, supply chain and freight forwarding units and global engineering" the company said. Barber was seen as the heir apparent to Abney.
Barber was cited for his work helping UPS expand in European and Asian markets.
"We deeply appreciate Jim's many contributions to UPS," Abney said.
Save 57% during our Halloween Sale. Don't let this market haunt you and join Jim Cramer's Investment Club, Action Alerts PLUS. Click here to sign up!