Research Desk Line-up: XPO Logistics Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 9, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on United Parcel Service, Inc. (NYSE: UPS) ("UPS"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=UPS, following the Company's reporting of its financial results on July 27, 2017, for the second quarter fiscal 2017 (Q2 FY17). The Atlanta, Georgia-based Company's Q2 FY17 total revenues and diluted EPS grew 7.7% and 10.5% y-o-y, respectively, outperforming market expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Air Delivery & Freight Services industry. Pro-TD has currently selected XPO Logistics, Inc. (NYSE: XPO) for due-diligence and potential coverage as the Company announced on August 02, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on XPO Logistics when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on UPS; also brushing on XPO. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=UPS

http://protraderdaily.com/optin/?symbol=XPO

Earnings Reviewed

For the quarter ended June 30, 2017, UPS's reported total revenues of $15.75 billion compared to revenues of $14.63 billion recorded at the end of Q2 FY16; which topped market expectations of $15.48 billion. The Company's currency-neutral revenue grew 8.9% y-o-y. Furthermore, the Company reported revenue growth in all segments and major product categories, which was primarily attributable to expanding customer demand across product portfolio.

During Q2 FY17, total operating expenses came in at $13.53 billion, rising 7.5% from $12.59 billion in the previous year's comparable quarter. The Company's total operating profit increased 8.7% to $2.22 billion y-o-y in Q2 FY17, while the currency neutral total operating profit was up by 14.3% to $2.33 billion y-o-y in Q2 FY17.

The multinational courier delivery services Company recorded net income of $1.38 billion, or $1.58 per diluted share, in Q2 FY17 compared to $1.27 billion, or $1.43 per diluted share, in the prior-year's comparable quarter. Meanwhile, Wall Street had expected net income of $1.46 per diluted share for Q2 FY17.

Segment-wise

US Domestic segment's revenues improved 8.1% to $9.75 billion for Q2 FY17 from the $9.02 billion reported in Q2 FY16, primarily driven by higher demand for UPS Air and Ground products. The segment's operating profit grew 13.1% to $1.40 billion in Q2 FY17 from $1.23 billion in the prior year's same quarter. Additionally, the segment's operating margin improved 60 basis points to 14.3% during Q2 FY17.

The Company's International segment reported revenues of $3.16 billion in Q2 FY17 compared to $3.08 billion in the last year's comparable quarter. The segment's operating profit was $583 million in Q2 FY17 versus $613 million in Q2 FY16.

Supply Chain & Freight segment's revenues grew 12.0% to $2.84 billion in Q2 FY17 from $2.54 billion in Q2 FY16. The segment recorded operating profit of $238 million in Q2 FY17, up 24% from $192 million in Q2 FY16.

Cash Flow & Balance Sheet

During the six months ended June 30, 2017, UPS generated $2.62 billion in cash from operating activities compared to $4.69 billion in the year ago corresponding period. Meanwhile, free cash flow for the half year ended June 30, 2017, stood at $624 million.

The Company had cash and marketable securities balance of $4.60 billion as on June 30, 2017, compared to $4.57 billion at the close of books on December 31, 2016. Furthermore, the Company had long-term debt amounting to $14.26 billion as on June 30, 2017, compared to $12.39 billion as on December 31, 2016.

Dividends and Share Repurchases

In a separate press release on August 03, 2017, UPS's Board of Directors declared a quarterly dividend of $0.83 per share on all outstanding Class A and Class B shares. The dividend will be payable on August 30, 2017, to shareowners of record on August 14, 2017.

As of June 30, 2017, the Company has bought back and retired 8.4 million shares worth approximately $900 million.

Outlook

In its guidance for the full year fiscal 2017, UPS reaffirmed adjusted diluted EPS guidance to be between $5.80 and $6.10, which includes about $400 million, or $0.30 per share of pre-tax currency headwinds. Furthermore, the Company expects currency headwinds and continued costs for strategic initiatives to weigh on results during Q2 FY17.

Stock Performance

On Tuesday, August 08, 2017, the stock closed the trading session at $111.89, marginally rising 0.03% from its previous closing price of $111.86. A total volume of 2.81 million shares have exchanged hands, which was higher than the 3-month average volume of 2.64 million shares. United Parcel Service's stock price advanced 5.05% in the last three months, 5.87% in the past six months, and 2.69% in the previous twelve months. The stock is trading at a PE ratio of 27.56 and has a dividend yield of 2.97%. At Tuesday's closing price, the stock's net capitalization stands at $96.63 billion.

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