• ITVI.USA
    16,926.180
    477.820
    2.9%
  • OTRI.USA
    28.200
    -0.120
    -0.4%
  • OTVI.USA
    16,895.230
    487.410
    3%
  • TLT.USA
    2.900
    0.130
    4.7%
  • TSTOPVRPM.ATLPHL
    2.630
    0.060
    2.3%
  • TSTOPVRPM.PHLCHI
    1.630
    -0.090
    -5.2%
  • TSTOPVRPM.CHIATL
    3.080
    -0.090
    -2.8%
  • TSTOPVRPM.DALLAX
    1.180
    -0.060
    -4.8%
  • TSTOPVRPM.LAXSEA
    3.360
    0.070
    2.1%
  • TSTOPVRPM.LAXDAL
    3.210
    -0.070
    -2.1%
  • WAIT.USA
    121.000
    1.000
    0.8%
  • ITVI.USA
    16,926.180
    477.820
    2.9%
  • OTRI.USA
    28.200
    -0.120
    -0.4%
  • OTVI.USA
    16,895.230
    487.410
    3%
  • TLT.USA
    2.900
    0.130
    4.7%
  • TSTOPVRPM.ATLPHL
    2.630
    0.060
    2.3%
  • TSTOPVRPM.PHLCHI
    1.630
    -0.090
    -5.2%
  • TSTOPVRPM.CHIATL
    3.080
    -0.090
    -2.8%
  • TSTOPVRPM.DALLAX
    1.180
    -0.060
    -4.8%
  • TSTOPVRPM.LAXSEA
    3.360
    0.070
    2.1%
  • TSTOPVRPM.LAXDAL
    3.210
    -0.070
    -2.1%
  • WAIT.USA
    121.000
    1.000
    0.8%
Air CargoAsia-PacificCompany earningsInternationalLess than TruckloadLogisticsNewsParcel

UPS’ third-quarter results surge past estimates

Strong across-the-board demand takes EPS nearly 40% above analysts' median outlook

UPS Inc., (NYSE:UPS) as many had expected, posted strong third-quarter results Wednesday morning, reporting adjusted diluted earnings per share of $2.28, a 10.1% year-on-year increase and well above the median estimates of $1.86 a share of analysts surveyed by Barchart.

The Atlanta-based transport and logistics giant reported revenue of $21.2 billion, a 15.9% year-on-year increase. Operating profit of $2.4 billion was up 9.9%, while net income climbed 11.8% to $2 billion. The results included a $44 million pre-tax charge for the costs of re-engineering the company’s vast delivery infrastructure to handle more business-to-consumer (B2C) transactions driven by the surge in e-commerce activity.

UPS shares, which have more than doubled since its lows in March, were trading down about 1% in pre-market activity Wednesday.

UPS reported adjusted operating profits of $1.13 billion for its U.S. domestic package segment on revenue of $13.2 billion. For the 2019 quarter, adjusted operating profit came in at $1.24 billion on revenue of $11.4 billion. Average daily volumes rose 13.8% year-on-year, with growth across all U.S. products, the company said. Adjusted operating margins for the U.S. segment came in at 8.6%.  

International package revenue came in at $4.08 billion, compared to $3.49 billion in the 2019 quarter. Adjusted operating profits rose to $972 million from $693 million, with average daily volumes up 12.1% field by strong outbound demand from Asia and double-digit export volume gains across UPS’ global system. Adjusted operating margins came in at 23.8%.

UPS’ Supply Chain and Freight Segment, which comprises all non-package businesses, posted revenue of $3.9 billion compared with $3.3 billion in 2019. Adjusted operating profits rose to $302 million from $256 million, the company said. UPS attributed the strong top-line results to better demand for its freight forwarding services supporting Asian outbound traffic.

The company cited strong Asian outbound demand and growth from the small to medium-sized business segment that it has been heavily focused on. UPS declined to give revenue and earnings guidance, citing the uncertainties surrounding the economic recovery.

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Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.

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