UPS Stock Surges After Beating Q3 Earnings and Revenue Expectations

United Parcel Service (UPS) saw a significant surge in its stock price following the release of its third-quarter earnings report, which exceeded Wall Street expectations. On Thursday, UPS reported earnings of $1.76 per share, surpassing the analysts’ consensus estimate of $1.63 per share.

The company also reported revenue of $22.2 billion, which was higher than the $21.94 billion consensus estimate compiled by Visible Alpha. This marks the first time in nearly two years that UPS has returned to posting year-over-year revenue and profit gains, after a period of decline following the peak in shipping demand during the pandemic.

UPS’s net income came in at $1.54 billion, or $1.80 per share, exceeding projections of $1.36 billion and $1.59 per share. The strong performance was largely driven by strength in domestic deliveries. “After a challenging 18-month period, our company returned to revenue and profit growth,” said UPS Chief Executive Officer Carol Tomé. “Peak season is nearly upon us, and we are ready to deliver another successful holiday season and continue the progress we demonstrated in the third quarter.”

Despite the positive quarterly results, UPS lowered its full-year revenue outlook to approximately $91.1 billion, down from the previous estimate of $93 billion. However, the company’s shares rose over 5% immediately after the results were released, though they are still down about 10% for the year.

Additionally, UPS has secured a new revenue stream by becoming the primary air cargo provider for the U.S. Postal Service, a contract that began in late September. This move is expected to contribute positively to the company’s financial performance in the fourth quarter and beyond.