UPS beats quarterly expectations and raises full-year revenue guidance to $92.6 billion
UPS just beat Wall Street expectations for the third quarter.
The short version
- The shipping giant raised its full-year revenue guidance to $92.6 billion.
- Net income hit $1.16 billion for the period ending September 30.
- Domestic revenue climbed 4.5 percent as the peak holiday shipping season starts.
Why it matters to you. For your business, a smoother and more automated network at the country's biggest delivery carrier means fewer lost parcels and faster transit times for the inventory on your shelves.
United Parcel Service, the massive package delivery network, just reported third-quarter results that beat Wall Street expectations and raised its full-year guidance. According to CNBC, the company is now projecting full-year consolidated revenue of approximately $92.6 billion, up from its previous expectations of $91.2 billion, alongside projected fourth-quarter revenue of $25.7 billion.
For the quarter ended September 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, the year prior. Adjusting for one-time expenses, UPS reported earnings per share of $1.69. In its domestic segment, the company saw a 4.5 percent increase in revenue, while its international segment had a 7.1 percent rise in revenue.
Its supply chain solutions business saw an 18.2 percent revenue increase, driven by growth in forwarding and logistics, including healthcare. The company had previously expected domestic revenue to be flat and average daily volume to fall due to seasonal declines and its shift away from Amazon, the giant online retail marketplace.
"As momentum builds, we are entering the holiday shipping season from a position of strength, with the most automated and efficient network in our history," said Carol Tomé, the chief executive of UPS. The company has been in the midst of a turnaround under Tomé's leadership, working to create a leaner business model and leveraging automation to position the company for growth.
