United Parcel Service Tuesday reported third-quarter results that beat Wall Street expectations and raised full-year guidance.
The guidance rose after the company had raised its outlook in the last quarter. UPS now said it projected full-year consolidated revenue of $92.6 billion, up from a previous expectation of $91.2 billion, as well as fourth-quarter revenue of $25.7 billion.
UPS shares rose slightly in morning trading.
Here’s how the company performed in the third quarter, compared to what Wall Street expected, based on a survey of analysts by LSEG:
- Earnings per share: $1.69 adjusted vs $1.63 expected
- result: $22.9 billion vs $22.29 billion expected
For the quarter ended Sept. 30, UPS reported net income of $1.16 billion, or $1.37 per share, down slightly from net income of $1.31 billion, or $1.55, a year earlier. Adjusting for one-time charges, UPS reported earnings per share of $1.69. Revenue rose 6.7% to $22.9 billion.
In the domestic segment, the company said there was a 4.5% increase in revenue, while the international segment saw a 7.1% increase in revenue. The supply chain solutions business saw an 18.2% increase in revenue, which UPS said was mainly driven by growth in logistics and logistics, including healthcare. In a call with analysts, CEO Carol Tomé said that healthcare revenue exceeded $3 billion for the third quarter in a row.
The company previously said it expected third-quarter domestic revenue to be flat and average daily volume to decline due to seasonal declines and lower sales. Amazon.
“We’re driving more premium growth, improving revenue quality and mix, and making more operational impact through a more efficient network,” said Tomé on the phone. “All this strengthens the performance of our business.”
UPS has been in the midst of a transformation under Tomé’s leadership, working to create a leaner business model and use automation to position the company for growth.
As the company prepares for the peak holiday season, Tomé said consumers remain resilient, and average daily volume growth between the third and fourth quarters will be consistent with last year. However, fourth quarter domestic average volume is expected to decline due to reductions with Amazon.
He added that nearly 70% of all packages will go through the automated process this holiday season.