UPS delivers stronger than expected earnings
Shares in United Parcel Service (UPS) climbed over 4% in early trading in New York on Tuesday, after the delivery giant posted better-than-expected earnings in the second quarter.
United Parcel Service Inc.
$147.59
10:59 26/04/24
In the three months to 30 June, UPS saw its earnings jump to $1.23bn, or $1.35 a share, from $454m, compared with analysts’ expectations of $1.26 a share.
However, due in part to currency headwinds, revenue declined 1% to $14.1bn, although domestic revenue increased 1.6% to $8.81bn and operating profit climbed 3%.
Total shipments rose 2.1% to 1.1bn packages, the company said in a statement, adding sales in its international markets fell 6.4% to $3.05bn but operating profit jumped 17% from the corresponding period in 2014.
UPS attributed the increase in operating profit to network improvements, volume growth and new pricing policies, adding the stronger dollar had provided a boost to US imports.
UPS shares were up 4.15% at 1435 BST on Tuesday.