United Parcel Service (NYSE: UPS) reported record fourth-quarter results and disclosed its 2022 forecast Tuesday. Amid a rise in shipping rates and e-commerce demand, shares surged 7% in premarket trading.
The multinational shipping & receiving and supply chain management company reported earnings of USD3.59 per share, compared to the expected USD3.10 a share. Revenue amounted to USD27.77 Billion, higher than analysts anticipated USD27.07 Billion.
“I want to thank all UPSers for their outstanding efforts throughout the holiday season and for once again delivering industry-leading service to our customers,” said Carol Tomé, UPS chief executive officer. “The execution of our strategy is delivering positive financial results and driving strong momentum as we move into 2022.”
Throughout the pandemic, demand for express shipping rose, specifically in business-to-consumer package deliveries and amid the continuous closures of traditional stores which incentivized more online shopping.
Nevertheless, the company’s shipping network remains jammed as a consequence of Covid restrictions and labor shortages. Analysts believe that the cost of ocean freights will remain high throughout the year. A particular analyst, who follows the UPS stock, believes UPS’ delivery times may have been delayed the previous month.
“For the most part, the weather was OK during December, and consumers concerned about shortages and empty shelves started their holiday shopping earlier than normal,” Cowen analyst Helane Becker said in a research note last week. “This likely helped on-time performance.”