UPS CFO: There Were Some Challenges in Quarter, But Outlook Is Strong
UPS (UPS) - Get Report spooked Wall Street a bit with its outlook for the full year.
"I think at the end we will have had a good 2018, but I don't they [Wall Street] took into account what happened in the pension account side -- but when you put it all together, it's a strong growth outlook," UPS CFO Richard Peretz explained to the TheStreet. With rates on the rise, UPS estimated that it will see about $200 million extra in pre-tax pension expense this year.
The company sees 2018 earnings in a range of $7.03 to $7.47 a share. Wall Street was looking for $7.54 a share. The company's bottom line is also being weighed down by costs to build out capacity that supports greater e-commerce shopping.
The transportation and logistics firm reported fourth quarter earnings of $1.67 a share, beating Wall Street forecasts by a penny. Net sales came in at $18.83 billion, higher than consensus estimates for $18.66 billion.
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