Tags: ups | stock | shares | profit | delivery | surge | virus

UPS Profit Beats on E-commerce Surge, Shares Jump

UPS Profit Beats on E-commerce Surge, Shares Jump
(Mohamed Ahmed Soliman | Dreamstime.com)

Thursday, 30 July 2020 09:27 AM

United Parcel Service Inc. on Thursday topped Wall Street estimates for quarterly profit and revenue as the COVID-19 pandemic led to a surge in home deliveries and healthcare shipments.

The news sent its shares (UPS) up about 12%.

Government stay-at-home orders have led to a boom in home deliveries of everything ranging from food to furniture, driving consumer shipments of the company up 65.2% in the quarter.

"Our results were better than we expected, driven in part by the changes in demand that emerged from the pandemic," said UPS Chief Executive Carol Tomé.

Average daily volumes in the United States jumped 22.8% and reached 21.1 million packages per day.

The surge in volumes comes at a cost as dropping packages on doorsteps is less lucrative than delivering to businesses as it requires more truck miles and stops per route.

But UPS has benefited from handling packages for its largest customer, Amazon, and with rival Fedex grappling with its own problems, UPS had an opportunity to steal market share and customers.

Total operating expenses at UPS rose 14.7% to $18.25 billion.

Atlanta-based UPS said net income rose 4.9% to $1.77 billion in the quarter ended June 30. Excluding items, the company earned $2.13 per share, beating estimates of $1.07 per share.

Revenue rose 13.4% to $20.46 billion, beating estimates of $17.48 billion, according to IBES data from Refinitiv.

Shares of the package delivery firm rose 11.8% to $138.44 in premarket trading. UPS shares have risen 5.7% this year compared with the Dow Jones Transports index's 9% decline. 

© 2020 Thomson/Reuters. All rights reserved.


   
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United Parcel Service Inc. on Thursday topped Wall Street estimates for quarterly profit and revenue as the COVID-19 pandemic led to a surge in home deliveries and healthcare shipments.The news sent its shares up about 12%.Government stay-at-home orders have led to a boom...
ups, stock, shares, profit, delivery, surge, virus
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2020-27-30
Thursday, 30 July 2020 09:27 AM
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