United Parcel Service (UPS) - Get Report was out there delivering in the first quarter as the coronavirus pandemic spurred the world to stay at home. It just wasn't delivering the stuff you think it would have been delivering, or making as much money doing it.
UPS on Tuesday reported first-quarter earnings that missed analysts’ forecasts as the coronavirus pandemic negatively impacted shipments of goods both within and outside the U.S., which were more about getting personal protective equipment (PPE) and other essentials back and forth than delivering what you purchased on Etsy or won on Ebay.
UPS posted adjusted earnings of $1 billion, or $1.15 a share, down from $1.2 billion, or $1.39 a share, in the comparable year-ago quarter and below the $1.24 a share expected by analysts polled by Factset.
Revenue came in at $18.03 billion, up from $17.6 billion a year ago and ahead of analysts’ forecasts of $17.3 billion. In the U.S., adjusted operating profit was $401 million vs. $694 million last year; internationally, adjusted operating profit was $558 millon vs. $612 million.
While UPS and other carriers have been designated essential services by governments around the world, the shift to moving essential products like personal protection equipment and other goods specific to the Covid-19 pandemic had an adverse impact on earnings, the company said.
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