United Parcel Service, Inc. (NYSE:UPS) on July 29, 2016 announced second-quarter 2016 diluted earnings per share of $1.43, a 6% increase over the same period last year. International operating profit increased 11% to $613 million, representing the sixth consecutive quarter of double-digit growth.
Total revenue was $14.6 billion, up 3.8% over the same quarter last year. Revenue growth was reduced by changes in fuel surcharges and currency exchange rates. On a currency-neutral basis, revenue increased 4.0%. Lower fuel surcharge rates reduced revenue growth by approximately 120 basis points.
For the six months ended June 30, UPS generated $4.7 billion in cash from operations and $3.7 billion in free cash flow after making capital expenditures of $1.0 billion. The company paid dividends of about $1.3 billion, an increase of 6.8% per share over the same quarter in 2015. UPS also repurchased 13.3 million shares for approximately $1.3 billion.
U.S. Domestic Package
U.S. Domestic operating profit increased to $1.2 billion and operating margin expanded 10 basis points to 13.7%. Productivity improvements bolstered by technology, combined with lower fuel costs, resulted in a 0.2% reduction in cost per unit compared to the same quarter in 2015.
Total revenue increased 2.4% over the second quarter of 2015, to $9.0 billion. Average daily package volume increased 2.5%, with Next Day Air up 5.6% and Ground products up 2.4%. Strong business-to-consumer (B2C) growth trends continued this quarter, outpacing business delivery growth more than five to one.
Revenue per package was flat compared to the same period last year. Fuel surcharge rates reduced yield growth by more than 100 basis points. Growth in base rates offset changes in product and customer mix.
Shares of United Parcel Service, Inc. (NYSE:UPS) fell -0.58% to reach at $108.10 during the course of session. The company has experienced volume of 3.99M shares while on average the company has a capacity of trading 2.68M shares. The stock holds the market capitalization of $95.36B along with 690.00M outstanding shares. The stock traded in the price range of $87.30 – $11.83 for the last trading session. For the stock price target value has been calculated at $11.58 based on calls of 19 experts. Stock’s minimum price target estimates has been figured out at $92.00 while the maximum price target forecast is established at $126.00.
As of current trade, United Parcel Service, Inc. (NYSE:UPS) has shown weekly downbeat performance of -2.05%. Its six months performance indicated a bullish movement while its yearly performance reflected a positive trend of 9.82%. Year-to-date (YTD) performance of the stock illustrate upbeat trend of 14.10%. Shares of United Parcel Service, Inc. (NYSE:UPS) currently have an ABR of 2.46, derived from a total of 16 opinions. The company’s price sits 1.84% above from its 50-day moving average of $107.77 and 7.01% above from the stock’s 200-day moving average of $102.32. The company has Relative Strength Index (RSI 14) of 47.55 along with Average True Range (ATR 14) of 1.27. Its weekly and monthly volatility is 1.15%, 0.99% respectively. The company’s beta value is at 0.90.
United Parcel Service, Inc. (NYSE:UPS)’s price to sales ratio for trailing twelve months is 1.62 and price to book ratio for most recent quarter is 39.17, whereas price to cash per share for the most recent quarter is 15.16. United Parcel Service, Inc. (NYSE:UPS)’s price to free cash flow for trailing twelve months is 40.38. Its quick ratio for most recent quarter is 1.30 along with current ratio for most recent quarter of 1.30. Total debt to equity ratio of the company for most recent quarter is 6.28 whereas long term debt to equity ratio for most recent quarter is 4.71. United Parcel Service, Inc. (NYSE:UPS) has a Return on Assets of 12.90%. The company currently has a Return on Equity of 224.80% and Return on Investment of 30.80%.