United Parcel Service (UPS) is off to a flying start this morning, with its shares soaring in pre-market trading after the delivery giant unveiled a strong third-quarter performance that exceeded Wall Street’s expectations.
The company reported consolidated revenue growth of 5.6% year-over-year, reaching $22.2 billion, surpassing the consensus estimate of $22.14 billion. This strong revenue growth was driven by a combination of robust domestic and international performance. The U.S. Domestic Segment revenue climbed by 5.8% to $14.45 billion, supported by a 6.5% increase in average daily volume. Meanwhile, the International Segment revenue grew by 3.4% to $4.41 billion, fueled by a 2.5% rise in revenue per piece.
The earnings picture was equally impressive. Adjusted earnings per share (EPS) for the quarter came in at $1.76, a 12.1% increase year-over-year, comfortably outpacing the consensus estimate of $1.63. The company’s operating performance was also strong, with consolidated operating profit rising by a remarkable 47.8% year-over-year to $1.983 billion, and an impressive 22.8% increase on an adjusted basis.
Looking ahead, UPS has adjusted its outlook for 2024. The company now expects revenue of approximately $91.1 billion (compared to the previous expectation of ~$93 billion), slightly below the $91.851 billion consensus. However, UPS anticipates an adjusted operating margin of 9.6%, exceeding its prior forecast of 9.4%.
The company’s strong performance and positive outlook have clearly resonated with investors, driving the share price up by 8.43% to $142.49 in pre-market trading. This impressive performance underscores UPS’s ability to navigate a challenging economic environment and maintain its position as a leading player in the global logistics industry.