UPS stock surges after profit, revenue rise above expectations

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Shares of United Parcel Service Inc. rose 1.3% in premarket trading Wednesday, after the package delivery service reported third-quarter profit and revenue that rose above expectations, as all three business segments beat forecasts. Net income increased to $1.96 billion, or $2.24 a share, from $1.75 billion, or $2.01 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share rose to $2.28 from $2.07, above the FactSet consensus of $1.90. Revenue rose 15.9% to $21.24 billion, beating the FactSet consensus of $20.21 billion. U.S. domestic package revenue rose 15.5% to $13.23 billion, above the FactSet consensus of $13.05 billion, while international package revenue grew 17.0% to $4.09 billion to beat expectations of $3.70 billion and supply chain and freight revenue increased 16.5% to $3.93 billion to top expectations of $3.59 billion. “Our results were fueled by continued strong outbound demand from Asia and growth from small and medium-sized businesses,” said Chief Executive Carol Tome. The company did not provide financial guidance, given continued uncertainty surrounding the effects of the COVID-19 pandemic. The stock has soared 42.8% over the past three months through Tuesday, while the Dow Jones Transportation Average has rallied 17.9% and the Dow Jones Industrial Average has gained 4.1%.
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