United Parcel Service (UPS) announced strong third-quarter results, surpassing Wall Street expectations and upgrading its full-year revenue forecast. The company now anticipates total consolidated revenue of approximately $92.6 billion, an increase from the previously projected $91.2 billion. For the fourth quarter, UPS expects revenue to reach $25.7 billion.
In early trading, UPS shares experienced a slight uptick. The company’s performance for the quarter ending September 30 indicated a net income of $1.16 billion, translating to $1.37 per share, down from $1.31 billion or $1.55 per share a year earlier. Nonetheless, adjusted earnings per share stood at $1.69, exceeding the estimated $1.63, while total revenue grew by 6.7% to $22.9 billion, surpassing the anticipated $22.29 billion.
Revenue in UPS’s domestic segment climbed by 4.5%, with the international segment seeing a 7.1% increase. Notably, the supply chain solutions segment reported an 18.2% revenue rise, attributed largely to advancements in forwarding and logistics, including healthcare services which have consistently generated over $3 billion for the third consecutive quarter. In a call with analysts, CEO Carol Tomé emphasized initiatives aimed at enhancing revenue quality and efficiency, which are vital to UPS’s turnaround strategy.
As the peak holiday season approaches, Tomé remains optimistic about consumer resilience and growth in average daily volume. However, she noted that fourth-quarter volume may decline due to adjustments with Amazon, while automated processes are expected to handle nearly 70% of all packages this holiday season.
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