Nomura Securities Lowers Estimates on UPS (UPS); Export Volume Disappointing
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Price: $117.18 +3.75%
Rating Summary:
18 Buy, 21 Hold, 3 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 15 | Down: 18 | New: 23
Rating Summary:
18 Buy, 21 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 15 | Down: 18 | New: 23
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Nomura Securities maintains a 'Neutral' on UPS (NYSE: UPS) price target of $80.00.
Analyst, Mark McVicar, said, "Q2 EPS of $1.15 was slightly shy of our expectation of $1.18 and Bloomberg consensus of $1.17. Within the mix, US Domestic saw aggregate volume growth of 3.5%, an average yield improvement of 0.6% and a margin improvement of 100 pbs, in line with expectations. International Package saw export volume growth of just 0.8% and domestic volumes down 3.2%. The export volume was particularly disappointing, with Asia export volume down over 10% and US exports also below expectations, pushing margins down by 100 bps. Supply Chain and Freight saw revenues down 1.6%, but margins up 50 bps. Underlying EPS growth in the quarter of 7.5% was, in our view, robust given the weakening market conditions. Management has revised down its 2012 expectations. Management expects to complete the TNTE acquisition in Q4."
FY12 EPS from $5.42 to $5.23; FY13 EPS from $5.96 to $5.75.
For an analyst ratings summary and ratings history on UPS click here. For more ratings news on UPS click here.
Shares of UPS closed at $74.27 yesterday.
Analyst, Mark McVicar, said, "Q2 EPS of $1.15 was slightly shy of our expectation of $1.18 and Bloomberg consensus of $1.17. Within the mix, US Domestic saw aggregate volume growth of 3.5%, an average yield improvement of 0.6% and a margin improvement of 100 pbs, in line with expectations. International Package saw export volume growth of just 0.8% and domestic volumes down 3.2%. The export volume was particularly disappointing, with Asia export volume down over 10% and US exports also below expectations, pushing margins down by 100 bps. Supply Chain and Freight saw revenues down 1.6%, but margins up 50 bps. Underlying EPS growth in the quarter of 7.5% was, in our view, robust given the weakening market conditions. Management has revised down its 2012 expectations. Management expects to complete the TNTE acquisition in Q4."
FY12 EPS from $5.42 to $5.23; FY13 EPS from $5.96 to $5.75.
For an analyst ratings summary and ratings history on UPS click here. For more ratings news on UPS click here.
Shares of UPS closed at $74.27 yesterday.
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