United Parcel Service, Inc. (UPS) Falls On 2015 Earnings Forecast

United Parcel Service, Inc. (NYSE:UPS) presented its long-term growth strategies and financial outlook during its investor conference in New York today.  The world’s largest package delivery company emphasized that it is “networked for growth.

The company plans to increase its focus on industrial verticals and international growth markets. It would also implement efficient capital investment in technologies, capabilities and footprint.

Crossroads Capital up 55.8% YTD after 32.5% in 2019 explains how it did it

Jeffrey Aronson Crossroads CapitalCrossroads Capital is up 55.8% net for this year through the end of October. The fund released its 2019 annual letter this month after scrapping its previous 2019 letter in March due to the changes brought about by the pandemic. For 2019, the fund was up 32.5% net. Since inception in June 2016, Crossroads Capital Read More

In addition, United Parcel Service, Inc. (NYSE:UPS) intends to offer customer solutions that leverage its global network, improve B2C profitability and deliver long-term shareholder value.

UPS fiscal 2015 outlook

For the fiscal 2015, United Parcel Service, Inc. (NYSE:UPS) forecasted that it would be able to achieve earnings in the range of $5.45 to $5.70 per share, which represents a growth rate of around 10% to 15%.

Wall Street analyst has a consensus estimate of $5.71 in earnings per share for 2015. The stock price of the company slightly dropped to $107.79 per share today.

United Parcel Service, Inc. (NYSE:UPS) estimated that its revenue growth next year will be higher at 5% to 6% compared this year. The company also plans to repurchase shares worth approximately $2.7 billion.

UPS long-term goals

UPS CFO Kurt Kuehn provided that the company’s 2015 outlook during the investor conference. He also stated that UPS is targeting a revenue growth rate of 5% to 7% and earnings growth rate of 9% to 13% per year over the next five years.

Kuehn added that United Parcel Service, Inc. (NYSE:UPS) is targeting a return on invested capital (ROIC) of around 25% to 30% and to repurchase more than $15 billion worth of shares from 2015 to 2019. UPS estimated that its total shareholder distribution would be around $30 billion over the next five years.

United Parcel Service, Inc. (NYSE:UPS) also announced its plan to invest approximately $2 billion to expand its international infrastructure in Asia, Europe and the Americas.

David Abney, CEO of United Parcel Service, Inc. (NYSE:UPS) said the company is strong and has proven its ability to adapt. “The needs of our customers continue to change, and we’re changing with them by offering new and innovative solutions,” said Abney.

In addition, Abney said, “UPS provides superior customer benefit by connecting a broad portfolio of solutions to the UPS global network. When coupled with efficient investment in technology, UPS generates substantial value for customers and shareowners.”

Last month, United parcel Service, Inc. (NYSE:UPS) reported better than expected earnings results for the third quarter. The company posted $1.32 in earnings per share on $14.29 billion in revenue. Wall Street analysts expected the company to deliver $1.28 in earnings per share on $14.20 billion in revenue.