Shares of United Parcel Service Inc. (UPS, Financial) fell more than 2% on Tuesday after the company posted third-quarter results. Revenue grew 5% from the prior-year quarter to $18.32 billion, falling $30 million short of expectations. Earnings of $2.07 per share were 6 cents shy of analysts' estimates.Ă‚
“Our results reflect significant progress from our transformation initiatives, and our ability to generate growth and deliver increased efficiencies in a dynamic economic environment,” Chairman and CEO David Abney said.
Consolidated revenue increased 5% to $18.3 billion on the back of strong average daily volume growth in the U.S. Further, total operating profit growth surpassed 23%, led by the U.S. Domestic and International segments. The total operating margin expanded 170 basis points, while the adjusted operating margin inched up 150 basis points.
Looking ahead to the full year, UPS expects adjusted diluted earnings per share between $7.45 and $7.75.
During the quarter ended June 30, Philippe Laffont (Trades, Portfolio) boosted his holding by 28% to 8,753 shares, Ken Fisher (Trades, Portfolio) increased his position by 16% to 49,269 shares, while John Hussman (Trades, Portfolio) cut his position in half to 10,000 shares.Â
Shares of The Procter & Gamble Co. (PG, Financial) advanced more tha 3% after reporting first-quarter revenue of $17.8 billion and earnings of $1.37 per share. Both figures were higher than analysts' estimates.
“We delivered strong top-line growth, profit margin expansion and cash productivity in the first quarter, enabling us to increase our outlook for fiscal year results,” Chairman, President and CEO David Taylor said.
During the quarter, the reported gross margin rose180 basis points, while the core gross margin increased 190 basis points versus the prior year. Further, the operating profit margin increased 280 basis points.
Looking ahead to fiscal 2020, the company expects sales growth between 3% and 5% when compared to the previous year.
During the second quarter, Laffont doubled his position to 4,869 shares and Paul Tudor Jones (Trades, Portfolio) established a new holding of 15,668 shares. On the other hand, Joel Greenblatt (Trades, Portfolio) reduced his position by 49% to 204,214 shares.
Disclosure: The author holds no position in any stocks mentioned.
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