UPS raises full-year outlook after third-quarter earnings beat

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UPS raises full-year outlook

Highlights

UPS raises full-year consolidated revenue outlook to $92.6 billion from $91.2 billion after third-quarter revenue of $22.9 billion tops expectations.
Adjusted earnings per share for the quarter reach $1.69, beating the $1.63 LSEG consensus, with net income at $1.16 billion versus $1.31 billion last year.
Domestic segment revenue grows 4.5%, international 7.1%, and supply chain solutions 18.2%, positioning UPS strongly for the holiday season with higher automation.

Quarter results and upgraded outlook

As reported by CNBC, United Parcel Service says third-quarter revenue and adjusted earnings per share top Wall Street expectations and support another increase in its full-year forecast. The company says it now expects about $92.6 billion in consolidated revenue for the year, up from its prior outlook of $91.2 billion.

UPS reports adjusted earnings per share of $1.69 for the quarter, compared with analyst expectations of $1.63 in an LSEG survey. Revenue reaches $22.9 billion, ahead of the $22.29 billion expected.

For the quarter ended Sept. 30, net income comes in at $1.16 billion, or $1.37 per share, slightly below $1.31 billion, or $1.55 per share, a year earlier. After one-time expenses, adjusted earnings per share reach $1.69.

Segment growth and holiday season position

Revenue in UPS's domestic segment rises 4.5%, while international revenue increases 7.1%. Supply chain solutions revenue climbs 18.2%, driven mainly by forwarding and logistics, including healthcare.

The company had previously said it expected third-quarter domestic revenue to be flat and domestic average daily volume to decline because of seasonal trends and lower Amazon-related business. Chief Executive Carol Tomé says in a statement that UPS is entering the holiday shipping season from a position of strength, supported by what she describes as the most automated and efficient network in the company's history.

UPS remains in the middle of a turnaround under Tomé's leadership, with a focus on building a leaner operating model and using automation to support future growth.

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