UPS Tops Q3 Earnings Estimates

UPS Tops Q3 Earnings Estimates

UPS (NYSE: UPS) posted strong third-quarter results on Tuesday. Additionally, 2022 is expected to foster even better results as the company continues to raise its rates.

The multinational shipping & receiving company reported adjusted earnings of USD2.65 per share, compared to the previous year’s USD2.24. Additionally, revenue rose 9.2% to USD23.2 Billion, in comparison to analysts’ anticipated USD22.56 Billion.

“Looking at the third quarter, our performance was better than anticipated,” said UPS CEO Carol Tomé on the company’s earnings call this morning. “[It was] driven by another quarter of improved revenue quality across all three of our operating segments. Operating profit was driven by solid revenue growth and strong expense control. Each of our segments delivered year-over-year operating improvement and double-digit operating margin. For the first nine months of 2021, UPS has generated more operating profit than any full-year in our history.”

On average the fourth quarter, which revolves around the holiday shopping season, is the most active and profitable for the company.

In an earnings call, Tomé revealed that UPS is intent on boosting capabilities that will allow the company to expand SMB (small- and medium-sized businesses). Amplified weekend delivery services were one of the new capabilities, covering approximately 90% of the U.S. population, and are set to be in action by later this week.

“These Saturday services provide more capacity for Sunday SurePost delivery [its hybrid delivery product using the USPS for the final mile],” she said. “The best part…is we have unlocked additional weekend capacity that benefits all customers without deploying additional capital.”

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