NEW YORK (TheStreet) -- United Parcel Service (UPS) shares closed trading down 1.17%% to to $108.55 on Wednesday on heavy volume after the shipping company's rival, FedEx (FDX) , reported second quarter earnings results that missed analyst expectations.
The stock fell on heavy trading today with 5.64 million shares being traded today, ahead of its three month daily average of 3.57 million.
FedEx reported second quarter earnings of $616 million, or $2.14 per diluted share, that fell below analysts' guidance by 8 cents. The company also generated $11.94 billion in revenue during the quarter, which was just short of the $11.99 billion analysts were expecting.
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The company said that its earnings for the period were hurt in part by the high maintenance costs of its aircraft. However, compared to FedEx, UPS historically achieves significantly wider margins and a return on invested capital that is approximately double.
Earlier this week analysts at Deutsche Bank downgraded UPS stock to "hold" from "buy" while setting a $116 price target on the shares and reiterating the firm's $1.45 fourth quarter EPS estimate for the company.
Separately, 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: