United Parcel Service (NYSE:UPS) fell in morning trades after lower fuel surcharge rates and currency impacts propelled the world’s largest package delivery company to generate lower-than-estimated revenue in the third quarter.
Shares dropped 2.9% to $103.11 at 11 a.m. in New York.
Revenue fell slightly to $14.24bn in the July-to-September quarter, from $14.29bn a year earlier, the Atlanta, Georgia-based company said in a statement on Tuesday.
Analysts had predicted revenue of $14.43bn, according to Capital IQ.
Net income increased 4% to $1.26bn, or $1.39 per share year-over-year.
Analysts, on average, expected earnings per share of $1.37.
Average daily package volumes declined 0.8%, UPS said, pointing to slowing industrial production that weighed on business-to-business deliveries.
UPS reiterated its full-year profit guidance of $5.05 to $5.30 per share as it heads into the crucial pre-Christmas shipping season.
Holiday hiring will be about 95,000 seasonal workers, equaling 2014’s level, UPS said.
UPS said it expects to deliver more than 630mln packages this holiday season, an increase of more than 10% from last year.