United Parcel Service Inc. (NYSE: UPS) today reported fourth-quarter results for the period ended on December 31, 2015. The Atlantic based delivery company announced significantly better-than-expected earnings as it performed well during the peak holiday season and gave a solid earnings outlook for 2016 despite of current uncertain economic conditions.
According to the report, the fourth-quarter adjusted earnings per share increased to $1.57, up 25.6% compared with $1.25 in the same period of last year. Results beat the Thomson Reuters consensus estimate of $1.42 per share. The quarterly revenue rose to $16.05 billion, slightly lower than Thomson Reuters consensus estimate $16.28 billion. Revenue growth was limited by unstable global currency trading and floundering crude oil markets.
Profits from all three business segments in UPS showed significant growth. The profit of domestic segment increased 18%, thanks to the strong demand from e-commerce shippers in holiday seasons. The disciplined pricing, favorable customer and product mix, and improved operational performance helped profit in the international segment and the supply chain and freight segment rise 16% and 11%, respectively.
David Abney, chief executive of UPS, said in a statement that "Our flexible integrated network, close collaboration with customers and the extraordinary efforts of UPSers enabled us to achieve great service and record financial performance this quarter."
UPS achieved adjusted earnings of $5.43 per share for the year 2015, with a yearly growth rate of 14%. For 2016, UPS expects earnings of $5.70 to $5.90 a share, with an 5% to 9% increase over 2015. The estimates are much higher than the expects from analysts of $5.73 a share, according to Thomson Reuters.
UPS shares have jumped to $96.00 this morning after the announcement, and fallen back thereafter. The stock price may be affected by the drop in oil prices today.