Global Trade And Logistics Bellwether UPS Misses Top and Bottom Line, Cuts Forecast

Tyler Durden's picture


UPS, traditionally considered one of the legacy bellwether, came out with earnings. And they were ugly. The company missed both the top and bottom line, with the revenue coming at $13.35 billion, below expectations of $13.7 billion, and EPS at $1.15 on expectations of $1.17. This merely confirms what those who did not have their head in the sand in Q2 knew all along: without Europe, global trade stalls every time. But it was the outlook cut that was the cherry on top: "The company’s performance was mixed during the second quarter,” said Kurt Kuehn, UPS’s chief financial officer. "The results in the U.S. Domestic and Supply Chain and Freight segments were partially offset by the weakness in International. “As we look toward the second half of the year, customers are more concerned as greater uncertainty exists. Additionally, economic growth expectations have come down,” Kuehn continued." China bull take note: "Revenue was $3 billion as the segment remains under pressure due to weaker global economies and reductions in exports from Asia." Going back to Kuehn: "Consequently, we are reducing our guidance for 2012 diluted earnings per share to a range of $4.50 to $4.70, an increase of 3%-to-8% over 2011 adjusted results.”  The firm's previous guidance was $4.75-$5.00, with sellside consensus of $4.82. Somehow we fail to see how the Q3 and Q4 renaissance, which is so critical to meet the S&P target of over 100 in earnings, will happen. Actually scratch that: it won't. Expect reality to slam stocks head on some time in Q3 as the realization that the air out of the US corporate juggernaut has come out, courtesy of a sliding EUR and surging USD. Or at least until the Chairman has something to say about it.

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Tue, 07/24/2012 - 07:55 | 2644993 Cdad
Cdad's picture

Gigantic earnings misses are...transitory.  As are free markets, representative republics, and human rights.

Long live gigantic corporations!

Tue, 07/24/2012 - 07:57 | 2644998 slaughterer
slaughterer's picture

Conclusion: SHORT AMZN

Tue, 07/24/2012 - 08:29 | 2645044 azzhatter
azzhatter's picture

Gigantic Corps are people too!

Tue, 07/24/2012 - 10:07 | 2645285 BudFox2012
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If you have an earnings miss, you didn't do that.  Someone else made that happen...

Tue, 07/24/2012 - 08:06 | 2644996 Rusticus
Rusticus's picture

We'll find out later that iPad shipments have fallen off a cliff.

Tue, 07/24/2012 - 08:19 | 2645030 Dr. Engali
Dr. Engali's picture

iPads are quickly becoming a commodity.

Tue, 07/24/2012 - 08:31 | 2645050 HelluvaEngineer
HelluvaEngineer's picture

Huh?  Everybody knows that Samsung makes the best iPad.

Tue, 07/24/2012 - 08:43 | 2645077 Dr. Engali
Dr. Engali's picture

I should have said tablets.

Tue, 07/24/2012 - 08:20 | 2645033 Conman
Conman's picture

Oh they have already started talking down AAPL earnings - users  are not buying iPhones because they are waiting for iPhone 5

Tue, 07/24/2012 - 07:58 | 2645002 caimen garou
caimen garou's picture

But my stock broker says US not affected that much from european problems, I fired my broker 2008

Tue, 07/24/2012 - 08:00 | 2645005 youngman
youngman's picture

Also the baltic dry...and shipping rates...all will be interesting to see how the Governments can skew the numbers this the end ..everyone will own the Swiss 2 year......but it will only be good for 1 then you will be out of

Tue, 07/24/2012 - 08:15 | 2645028 disabledvet
disabledvet's picture

Long way to Chicago from the Baltic.

Tue, 07/24/2012 - 08:20 | 2645031 ExhiledInMass
ExhiledInMass's picture


can you point me to a place where I can track the BI? I have seen it's relavance in articles on ZH but not found a good way to observe it.



Tue, 07/24/2012 - 08:21 | 2645035 ExhiledInMass
ExhiledInMass's picture

sorry for the mis-spell on the name youngman

Tue, 07/24/2012 - 08:01 | 2645009 q99x2
q99x2's picture

Aren't we susposed to elect the person that can do something about it? Well Obama can't do shit and fuck Bernanke I did not vote for him either.

Tue, 07/24/2012 - 08:02 | 2645012 LongSoupLine
LongSoupLine's picture



"What's that brown all over you?"

Tue, 07/24/2012 - 08:04 | 2645016 GetZeeGold
GetZeeGold's picture



You've been drafted by UPS.


Tue, 07/24/2012 - 08:07 | 2645017 LongSoupLine
LongSoupLine's picture



Not mentioned are fuel costs too.  There's no way all that's being passed on to the customer...then again...


oh well, no worries.  Our lean, efficient and nimble USPS will pick up any slack.

Tue, 07/24/2012 - 08:07 | 2645018 wonderatitall
wonderatitall's picture

so? you know romney has money..and bush and cheney and romney are white...and and and....racism. thats about it until the truth dept of lies gives me more FACTS

Tue, 07/24/2012 - 08:10 | 2645020 John Law Lives
John Law Lives's picture

"The company missed both the top and bottom line, with the revenue coming at $13.35 billion, below expectations of $13.7 billion, and EPS at $1.15 on expectations of $1.17."

EPS estimates for UPS were $1.21 as of 90 days ago, and they were revised downward several times prior to the latest release of earnings.  If UPS had actually beaten $1.17, the MSM whores would probably have thrown a ticker tape parade.  Imagine that...


Tue, 07/24/2012 - 08:18 | 2645029 Mr_Wonderful
Mr_Wonderful's picture

Dollar up = fewer dollars for UPS to book as revenue and profits back home in the U.S. Same for other multinationals.

Tue, 07/24/2012 - 08:30 | 2645048 deepsouthdoug
deepsouthdoug's picture

Must not be flying as many iphones and ipads from China in those 747s.  So what does that bode for AAPL?

Tue, 07/24/2012 - 08:34 | 2645053 orangegeek
orangegeek's picture

UPS has probably stopped delivering to the cities in China built by the communist government that no one lives in.

Tue, 07/24/2012 - 08:39 | 2645063 XitSam
XitSam's picture

These estimates are made by analysts, right? Why is it that the company is seen as not meeting expectations instead of the analysts made a mistake?

Tue, 07/24/2012 - 08:48 | 2645089 Conman
Conman's picture

Because analysts are just crunching numbers based on growth figures, pe ratios, etc.

Tue, 07/24/2012 - 08:46 | 2645080 Shizzmoney
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I know what drives traffic to a website and I made a decision a long time ago that this website wasn’t going to be nothing but a traffic whore based on articles about politics, gold, Apple, porn and conspiracy theories about the national debt and Federal Reserve.  No, I was going to try to teach people something important about money, finance and the investment world.

Oh noes!  The Libertarians, and the free thinking liberals, with their gall of the use of their own free thought!

Tue, 07/24/2012 - 08:52 | 2645103 Mr_Wonderful
Mr_Wonderful's picture

Right, there are no conspiracies only rogue traders and lone gunmen and soon lone dronemen.

Tue, 07/24/2012 - 09:00 | 2645124 monopoly
monopoly's picture

UPS, FED Ex a big deal and a tell on where we are headed. Going down.

Tue, 07/24/2012 - 09:06 | 2645147 Mr_Wonderful
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1936. J. Stalin is spending his evenings happily smoking his pipe and going over his list and picking out who´s to be shot and who´s going to the Gulag. That´s communism and we spent grillions to get rid of that.

2012. Obammy is spending his evenings happily chilling with a toke and going over his list and picking out who´s to be rubbed out on the other side of the world by drone. That´s democracy and we´ve spent grillions to defend that.

Do NOT follow this link or you will be banned from the site!