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Shipping giant United Parcel Service, Inc. ($UPS) reported Thursday ahead of the market open a double earnings beat, lifting its shares in premarket trading.
On Stocktwits, sentiment for UPS was ‘bullish’ (56/100), with message volume remaining ‘high.’ The stock was among the top 10 trending tickers.
Atlanta, Georgia-based UPS reported third-quarter non-GAAP earnings per share (EPS) of $1.76, up about 12% from a year ago and beating the consensus estimate of $1.63.
The earnings growth was partly aided by a 5.6% year-over-year (YoY) increase in revenue to $22.2 billion. This top-line just squeaked past the analysts’ average estimate of $22.1 billion.
UPS noted a 6.5% increase in average daily volume in the U.S., while a 2.5% increase in revenue per piece helped its international segment. Revenue contribution from these two segments was roughly 65% and 20%, respectively.
Supply-chain solutions, which made up 15% of the total revenue, saw 8% revenue growth, primarily due to growth in air and ocean forwarding and the continued onboarding of USPS air cargo.
“After a challenging 18-month period, our company returned to revenue and profit growth,” said CEO Carol Tomé in a statement.
Looking ahead, UPS anticipates revenue of $91.1 billion for 2024 and non-GAAP adjusted operating margin of about 9.6%. Previously, the company expected the metrics to be at $93 billion and 9.4%, respectively.
The company said the guidance has been adjusted to reflect the third-quarter results, Coyote disposal and the fourth-quarter guidance.
It expects to pay out $5.4 billion in dividend, subject to shareholder approval.
The retail crowd was generally about margin growth and dividend.
In premarket trading, as of 8:50 am ET, the stock climbed 8.73% to $142.88, marking the highest level since late-July.
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