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Updated at 7:29 am EST
United Parcel Service (UPS) posted stronger-than-expected second earnings Tuesday, while repeating its full-year profit guidance, thanks to solid gains in the group’s domestic business that offset weakness in supply chain sales.
UPS said earnings for the three months ending in September were pegged at $2.96 per share, up 9.2% from the same period last year and firmly ahead of the Street consensus forecast of $2.84 per share. Group revenues, the company said, rose 4.4% to $24.2 billion, just shy of analysts’ estimates of a $24.32 billion tally.
Domestic segment revenues rose 8.2% to $15.374 billion, UPS said, powered in party by a 9.8% boost in revenue-per-piece, a key industry metric. International revenues were up 1.7% to $4.799 billion while supply chain solutions sales fell 6.3% to $3.988 billion.
Looking into the current calendar year, UPS reaffirmed its guidance for revenues of more than $102 billion and earnings in the region of $14 billion.
“I want to thank UPSers around the world for their unstoppable spirit and for continuing to deliver outstanding service to our customers,” said CEO Carol Tomé. “The macro environment is very dynamic, but we are on track to achieving our 2022 financial targets by executing our strategy and controlling what we can control.”
UPS shares were marked 4.6% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $175.20 each.
Last month, UPS rival FedEx Corp (FDX) pulled its full-year earnings guidance following a surprise quarterly update that pegged fiscal first quarter earnings at $3.44 per share, well south of the Street consensus forecast of $5.14 per share, with revenues of $23.2 billion.
Additionally, citing softness in package volumes that accelerated over the summer months, the group withdrew its June profit forecast for the 2023 fiscal year that saw earnings of between $22.45 and $24.45 per share, although it will continue to honor its $1.5 billion share buyback pledge.
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