United Parcel Service Inc. reported higher first-quarter net profit on Thursday, driven by strong package volumes in its core U.S. segment, but is it enough to bring ETFs with UPS back up?
According to Reuters, “Shares were up 2.2 percent in morning trade after the world’s largest package delivery company said revenue increased 10 percent to $17.1 billion in the first quarter from a year ago, topping analyst expectations of $16.47 billion. Revenue at its core U.S. package service rose 7.2 percent to $10.2 billion from a year-ago, driven by a 4.6-percent rise in parcel volumes that reflected growth of online purchases.”
A harsh winter, network improvements, and higher pensions costs dragged UPS’s operating profit by $85 million, Operating profit dropped 20 percent, and was down 6 percent overall.
10 ETFs with Exposure to USPS React to Revenue Report
- First Trust Nasdaq Transportation ETF (FTXR) with a 7.16% weighting down unchanged .77%.
- iShares Transportation Average ETF (IYT) with a 7.03% weighting down .77%.
- Fidelity MSCI Industrials Index ETF (FIDU) with a 3.21% weighting down .20%.
- SPDR Select Sector Fund Industrial (XLI) with a 2.90% weighting down .30%.
- Vanguard Industrials ETF (VIS) with a 2.76% weighting down 0.32%.
- SPDR S&P Transportation ETF (XTN) with a 2.54% weighting down 0.77%.
- iShares U.S. Industrials ETF (IYJ) with a 2.52% weighting up 0.13%.
- iShares Global Industrials ETF (EXI) with a 1.91% weighting up 0.18 %
- PowerShares S&P 500 Quality Portfolio(SPHQ) with a 1.77% weighting up 1.28%
- First Trust Capital Strength ETF(FTCS) with a 1.77% weighting down .28%.
UPS Indicator of U.S. Economic Growth
UPS, seen as an indicator of U.S. economic strength and consumer demand, reaffirmed its 2018 earnings per share range of $7.03 to $7.37.
It also maintained its 2018 spending plan of between $6.5 billion to $7 billion on network improvements, advancing company processes with automation and new technology.
“Top-line growth in our business was strong across all business segments, reflecting the power of UPS’s global solutions and continued favorable economic conditions,” UPS Chairman and CEO David Abney said in a statement. “When combined with our transformation initiatives, these favorable trends position UPS for strong returns going forward.”
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