United Parcel Service Inc. (UPS) shares soared on Thursday after the company signaled a return to growth in both sales and profits following a "challenging" period.
UPS shares soar as net income jumps
The Atlanta-based courier reported a 37% surge in third-quarter net income, reaching USD 1.54 billion, compared to USD 1.13 billion a year ago. Both basic and diluted earnings per share (EPS) also rose 37% to USD 1.80, up from USD 1.31.
Revenue increased 5.6% to USD 22.25 billion, up from USD 21.06 billion, while operating expenses rose more modestly by 2.7% to USD 20.26 billion, compared to USD 19.72 billion.
"After navigating an 18-month challenging period, we’ve returned to revenue and profit growth," said CEO Carol Tomé. "With peak season approaching, we're ready to deliver a successful holiday season and continue building on the progress demonstrated in Q3."
UPS reported a 5.8% increase in U.S. revenue, fueled by a 6.5% rise in average daily volume. International revenue saw a 3.4% uptick, while Supply Chain Solutions revenue jumped 8%, driven by growth in air and ocean freight forwarding, along with the continued onboarding of USPS air cargo.
Following the report, UPS shares climbed 7.3% in pre-market trading on Thursday, reaching USD 141.00.
Looking forward, UPS revised its 2024 revenue forecast downward to USD 91.1 billion from the previous estimate of USD 93.0 billion made in July. However, this still represents an increase from USD 90.96 billion in 2023. The company also raised its non-GAAP adjusted operating margin forecast to 9.6%, up from 9.4%, and expects dividend payments to total around USD 5.4 billion, pending board approval.
