UPS Delivers an Earnings Beat Despite a Drop in Q2 Revenue

UPS (UPS) reported earnings on Tuesday that beat estimates despite a drop in revenue. The parcel delivery service was helped by increased profit margins and overseas business as total shipments increased 2.1 percent, reaching 1.1 billion deliveries. UPS posted earnings of $1.35 per share, beating the expected $1.26 per share and up from last year's $1.21. Revenue was down to $14.1 billion, missing estimates of $14.5 billion. The strong dollar drove up U.S. imports and operating profit saw a 17 percent increase on the back of distribution improvements and new pricing initiatives. However, the Atlanta-based company continued to feel headwinds from the strong dollar and sluggish growth domestically in light of the impending U.S. rate hike. UPS shares are down almost 15 percent his year but the stock was up on the earnings news. The delivery service is planning to grow its business in 5 Latin American countries and has also forged a deal with Staples (SPLS) to transport and ship their stationery goods. UPS has kept its forecast range unchanged and is expecting full year earnings for 2015 to range from $5.05 to $5.30. Wall Street estimates are predicting earnings of $5.19 per share for the year.