UPDATE: UPS Q2 Profit Misses Estimates, Shares Drop

Shares of United Parcel Service

dropped more than 3% in pre-market trading after the company reported downbeat second-quarter earnings. The Atlanta, Georgia-based company posted its quarterly earnings of $454 million, or $0.49 per share, last quarter, down from $1.07 billion, or $1.13 per share, in the year-ago period. Its adjusted earnings per share climbed to $1.21 versus $1.13. Its sales jumped 5.6% to $14.27 billion versus $13.51 billion. However, analysts were projecting a profit of $1.25 per share on sales of $14.13 billion. US domestic revenue rose 5.2% to $8.7 billion, while international small package revenue jumped 6.2% to $3.3 billion. Supply chain and freight revenue also rose 6.5% to $2.3 billion in the quarter. US domestic daily package volume also surged 7.4%. “The strong revenue growth this quarter is evidence that our portfolio resonates with customers, with more choosing UPS as their logistics provider,” said Scott Davis, UPS chairman and CEO. For the full year, UPS cut its adjusted earnings forecast to $4.90 to $5 per share. UPS shares declined 3.18% to $99.40 in pre-market trading.