NEW YORK (TheStreet) -- Shares of United Parcel Service (UPS) are down -2.64% to $99.95 in pre-market trade after the package delivery company lowered its full-year profit outlook as it spends money to smooth out its peak shipping period, Bloomberg reports.
The company said it forecasts earnings per share of $4.90 to $5.00. That's below the forecast it gave in April of $5.05 to $5.30 per share.
UPS said it plans to spend $175 million on improving its shipping during the holiday crush from Thanksgiving through Christmas.
Earnings per share excluding some costs and gains were $1.21 a share in the second quarter, the company said.
That excluded a $665 million after-tax charge relating to a change in its employee health-care system and missed the $1.25 average estimate from 23 analysts compiled by Bloomberg.
TheStreet Ratings team rates UNITED PARCEL SERVICE INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED PARCEL SERVICE INC (UPS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."