UPS Trading Lower Following Cautious 2015 Guidance

Shares of

traded lower Thursday afternoon following a cautious outlook for 2015. Speaking at an investor day conference, UPS's management guided its full year 2015 earnings per share to a range of $5.45 to $5.70. This may be seen negatively by investors and traders as the current analyst consensus for 2015 is $5.70. The company expects to see fiscal 2015 global sales growth of 5 percent to 6 percent with an operating profit growth between 9 percent and 11 percent. Domestic sales growth is expected to be 5 percent to 6 percent in 2015. Other notable comments from the investor conference include a commitment to return $30 billion to shareholders over the next five years. The company also plans to fully automate its sorting hubs for Tier 1 regions by 2020. In addition, UPS plans on adding 20 new Chinese markets and expand its presence in the 33 markets it currently operates in.