The company expects quarterly earnings of $1.25 a share, compared to the Capital IQ Consensus Estimate of $1.43 a share. UPS also lowered its full-year EPS guidance to $4.57 a share from between $4.65 and $4.85 a share.
UPS says the U.S. results were negatively impacted by the shorter-than-usual peak holiday season paired with record levels of online shopping. The firm tried to meet the demand in several ways, including hiring 85,000 temporary workers, 30,000 more than originally planned. Weather was also a factor in the results.
UPS also delivered weaker-than-expected guidance for 2014 that see EPS raise between about 10% and 15% to between $5.03 and $5.26 a share. Capital IQ Consensus estimates EPS of $5.49 a share for 2014.
TheStreet Ratings team rates UNITED PARCEL SERVICE INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED PARCEL SERVICE INC (UPS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."