John Sommers II for Reuters
CHICAGO — After two consecutive years of problems during its holiday peak package season, UPS delivered on time at Christmas this year, while its main rival, FedEx, had a last-minute stumble that left some gifts undelivered until after the holiday.
"It seems like the third time's a charm for UPS," said Kent Winegar, portfolio manager at Austin, Texas-based Terry McDaniel & Co., which manages assets of around $900 million and holds nearly $15 million in UPS stock. "But if e-commerce keeps growing at such a rapid rate, we'll see how they do next year."
A late surge in e-commerce orders and bad weather in 2013 left an estimated 2 million packages undelivered on Christmas Eve, mostly stranded in Atlanta-based United Parcel Service Inc's package network. Arch rival FedEx Corp experienced problems on a smaller scale.