Yahoo Finance UPS Jumps as Higher Volumes, Prices Boost Sales, Profit
By Dhirendra Tripathi
Investing.com – United Parcel Service stock (NYSE:UPS) traded 4.5% higher in Tuesday’s premarket as strong demand and price hikes took the delivery firm’s third-quarter sales and profit past expectations.
The company also hiked guidance for annual adjusted operating margin by about 0.3 percentage point to around 13%, ahead of the holiday season, indicating that it is still able to pass on to customers the higher input costs that it has warned of previously. The adjusted operating margin was 10% in the third quarter.
UPS and rivals like FedEx (NYSE:FDX) have enjoyed a lasting boost to their businesses from the pandemic, which has accelerated an already existing trend to e-commerce and home delivery.
Higher labor and fuel costs have led companies of all hues to pass on those charges to consumers, boosting toplines.
UPS’s revenue from U.S. operations, its biggest market, rose over 7% to $14.20 billion. International revenue jumped 15% to $4.72 billion.
Consolidated revenue was higher by over 9% at $23.2 billion and adjusted profit per share jumped 19% to $2.71.
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UPS Jumps as Higher Volumes, Prices Boost Sales, Profit
