United Parcel Service (NYSE:UPS) reported better-than-expected quarterly earnings bolstered by
strong e-commerce demand that has allowed the delivery firm to raise shipping prices.
The company also raised its full year adjusted operating margin target to about 13% from 12.7%
previously ahead of the busy holiday season.
Shares of UPS rose about 2% in premarket trading on news of the financial results.
UPS and rival Federal Express (NYSE:FDX) are delivering record numbers of e-commerce
packages amid labor shortages since COVID-19 shifted shopping online.
Revenue from UPS’ U.S. operations, its biggest segment, rose 7.4% to $14.21 billion U.S. in the
third quarter.
The company’s operating profit increased to about $2.9 billion U.S., or $2.65 U.S. per share, in
the third quarter ended September 30 from $2.36 billion U.S., or $2.24 U.S. per share a year
earlier.
On an adjusted basis, UPS’ operating profit amounted to $2.71 U.S. per share, above the
average analyst estimate of $2.55 U.S., according to Refinitiv data. Revenue rose 9.2% to
$23.18 billion U.S., beating expectations of $22.56 billion U.S.
