UPS reported third-quarter results that beat Wall Street expectations on revenue and adjusted earnings. The company raised its full-year guidance for the second quarter in a row, projecting revenue of approximately $92.6 billion.
United Parcel Service beat Wall Street expectations for its third quarter on Tuesday and raised its full-year guidance. The raise follows an outlook increase the company already made last quarter.
Revenue and adjusted earnings top estimates
UPS posted adjusted earnings per share of $1.69 against $1.63 expected, based on an LSEG survey of analysts. Revenue came in at $22.9 billion versus $22.29 billion expected.
For the quarter ended Sept. 30, UPS reported net income of $1.16 billion, or $1.37 per share. That was down slightly from $1.31 billion, or $1.55, a year earlier. Revenue rose 6.7%.
By segment, domestic revenue rose 4.5%, while international revenue rose 7.1%. Supply chain solutions had an 18.2% revenue increase that UPS said was primarily driven by growth in forwarding and logistics, including healthcare.
Full-year outlook moves up
UPS now projects full-year consolidated revenue of approximately $92.6 billion, up from its previous expectation of $91.2 billion. It also projects fourth-quarter revenue of $25.7 billion. Shares rose slightly in premarket trading.
The company had previously said it expected third-quarter domestic revenue to be flat, with domestic average daily volume falling on seasonal declines and the glide down with Amazon.
CEO Carol Tomé said in a statement: "we are entering the holiday shipping season from a position of strength", according to CNBC. UPS has been in the midst of a turnaround under her leadership, working to create a leaner business model and using automation to position the company for growth.
Source: CNBC
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