UPS to Ride U.S. Growth in 2012

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UPS (UPS) beat fourth quarter earnings estimates and projected strong growth in the U.S. for 2012, although results in the rest of the world could be mixed. Shares slid 1.7% in morning trading.

UPS posted $1.28 of EPS, 2 cents ahead of analysts’ expectations. (A shift in pension accounting made its official GAAP earnings much lower, but that shift was announced last week.) Average daily volume rose 3.8% as online shopping rose.

The company’s operating margin in 2011 was up 140 basis points year-over-year.

“Looking to 2012, our expectations are for mixed economic growth around the world, with modest improvement in the U.S. However, UPS projects another strong year of earnings,” said CFO Kurt Kuehn in a statement. “We expect diluted earnings per share to be within a range of $4.75 to $5.00, an increase of 9% to 15% over adjusted 2011 results.

The midpoint of that range is ahead of analysts’ expectations for $4.80.



Original Article Source by Barrons.com