Big Brown on Thursday reported higher fourth-quarter earnings, driven in part by strong demand for next-day service in the U.S. over the holiday shopping season, particularly from its biggest customer, Amazon.com.
The Atlanta-based company posted adjusted earnings of $1.8 billion, or $2.11 a share, vs. $453 million, or $1.94 a share, in the year-earlier quarter, The per-share results matched the average consensus estimate of analysts polled by FactSet.
UPS said its U.S. domestic segment "experienced growth from a number of large and small-to-medium-sized customers, with the growth led by its largest customer, Amazon."
For 2020, UPS said it expects earnings per share in the range of between $7.76 and $8.06, which includes forecast weakness on the industrial side of the U.S. and global economies as well as spending “that will significantly increase UPS competitiveness and will be EPS accretive in 2021.”
Investors weren't quite as happy with the results, however, with shares of Big Brown falling nearly 6% to $108.99 in morning trading on Thursday.
Catch up on the Latest Videos on TheStreet!
- Don’t Get Too Excited About Intel’s Guidance— The Short-Seller’s Case on the Stock
- Latest From Jim Cramer: Here's Why Jim Cramer's Looking at Disney's Stock During the Coronavirus Outbreak
- TheStreet Explains: How Does Shorting a Stock Work?
- Retirement Daily: Add This Often-Forgotten Task to Your 2020 Financial To-Do List
- Sports Biz: Exploring the Math Behind Super Bowl Squares Pools
- Free Webinar: Expert Advice on Equity Trading by CME Group