UPS Delivers Strong Q3 Results, Revenue Growth Surges

United Parcel Service (UPS) announced its third-quarter results on October 24, 2024, showcasing a positive turnaround after a streak of revenue misses. The company achieved consolidated revenue of $22.2 billion, marking a 5.6% growth compared to the same quarter last year. This result exceeded the market consensus of $22.14 billion. Alongside this, the adjusted earnings per share (EPS) rose by 12.1% to $1.76, significantly higher than the analysts' forecast of $1.63. The improved performance is attributed to various factors, including increased operating profit, which surged by 47.8% year-over-year to $1.983 billion. Positive growth occurred across UPS's business segments, notably in the U.S. Domestic Segment, which saw a revenue uptick of 5.8% to $14.45 billion, driven by a rise in average daily volume. Meanwhile, the International Segment and the Supply Chain Solutions Segment also reported growth. Looking ahead, UPS updated its outlook for 2024, expecting revenue of approximately $91.1 billion, slightly lower than its previous estimate. However, the company improved its adjusted operating margin forecast to 9.6%, signaling a strong operational trajectory. Despite the revenue revision, UPS remains committed to ambitious capital expenditures and intends to uphold substantial dividend payments. This announcement resulted in an 8.43% increase in UPS shares premarket, highlighting investor confidence following the strong quarterly results.