UPS CFO: The U.S. Consumer Is Saving the Economy Right Now

Robust spending online during the holidays helped shipping giant United Parcel Service (UPS) deliver the goods to investors, despite a slowdown in the U.S. economy. Shares of UPS popped by as much as 3% on Tuesday as fourth quarter earnings came in at $1.57 a share, surpassing forecasts for $1.42 a share. Total revenue for UPS’ U.S. domestic package business increased 2.6%, with the segment’s operating margin improving to 13.1% from 11.4% a year ago. Average daily shipments in the U.S. rose 2.4%. The company completed deliveries to 1.9 million new addresses in December, showcasing the impact from the ongoing rise in online shopping. UPS estimates that 60% of its shipments in December in the U.S. went straight to consumers. Even with the solid holiday season in the books, UPS remains mindful of the mixed conditions in the U.S. economy in part caused by the rout in oil prices and turbulent stock market. TheStreet’s Brian Sozzi reports from Wall Street.