UPS Fails to Deliver in Q3
United Parcel Service released better than expected third-quarter results before the markets opened on Wednesday, but shares retreated.
When United Parcel Service Inc. (NYSE: UPS | UPS Price Prediction) reported its third-quarter financial results before the markets opened on Wednesday, the package delivery firm said that it had $2.28 in earnings per share (EPS) and $21.2 billion in revenue. The consensus estimates were calling for $1.86 in EPS on revenue of $20.13 billion, and the same period of last year reportedly had EPS of $2.07 and $18.32 billion in revenue.
During the most recent quarter, revenues increased 15.9% year over year. Consolidated average daily volume increased by 13.5% in that time.
The U.S. Domestic segment revenues increased 15.5% year over year to $13.23 billion, with an operating profit of $1.10 billion. Average daily volume increased 13.8%, with growth across all products and continued elevated residential demand.
The International segment revenue increased 17.0% to $4.09 billion, with operating income of $966 million. Average daily volume grew 12.1%, with double-digit export volume growth globally and continued strong outbound demand from Asia.
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The Supply Chain and Freight segment revenue increased 16.5% year over year to $3.93 billion, with operating income of $299 million. This move was driven by strong freight forwarding demand out of Asia.
Year to date, cash from operations totaled $9.3 billion at the end of the quarter, with adjusted free cash flow of $5.9 billion.
Looking ahead to the fourth quarter, UPS has decided against issuing guidance, considering the impact of the COVID-19 pandemic. Analysts are calling for $1.98 in EPS on $22.12 billion in revenue for the quarter.
United Parcel Service stock traded down 5.2% at $162.28 on Wednesday, in a 52-week range of $82.00 to $178.01. The consensus price target is $160.40.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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