United Parcel Service Inc (NYSE:UPS) saw its shares tumble in premarket despite returning to profits and posting market-beating profit and sales numbers for the fourth quarter.
The package delivery giant said in the quarter, it swung into a profit of US$1.1bn, or US$1.27 a share, from a loss of US$239mln or 27 US cents a share a year ago.
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Thanks to the tax-reform law, it benefited from an additional 30 US cents to its net EPS, the company said in a statement.
Excluding non-recurring items, adjusted EPS came in at US$1.67, just about above the market’s expectations for US$1.66.
Revenue was up 11% at US$18.83bn from the previous year’s US$16.93bn, and comfortably above Wall Street’s consensus of US$18.19bn.
UPS US domestic package, international package and supply chain and freight businesses all performed above expectations.
The company is now guiding 2018 EPS of US$7.03 to US$7.37. The market consensus is for EPS of US$7.21.
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It is also guiding capital expenditures of US$6.5bn to US$7.0bn for the year, mostly for investments in new technology, aircraft and automated capacity.
In premarket trade, its shares dropped 5.21% at US$120.69.