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Friday, November 27, 2020

United Parcel Service’s revenue jumps 15.9% in the fiscal third quarter.

  • United Parcel Service’s revenue jumps 15.9% in the fiscal third quarter.
  • The parcel delivery services reports £1.51 billion of net income in Q3.
  • UPS is now more than 35% up year to date in the stock market.

United Parcel Service Inc. (NYSE: UPS) published its earnings report for the fiscal third quarter on Wednesday that topped analysts’ estimates for earnings and revenue. The company said that all three business segments performed better than forecasts in the recent quarter.

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Shares of the company tanked close to 5% in premarket trading and lost another 2% on market open. On a year to date basis, the U.S. company is now more than 35% up in the stock market. Learn more about value investing strategy.


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At the time of writing, UPS is valued at £87 billion and has a price to earnings ratio of 31.86.

UPS Q3 financial results versus analysts’ estimates

UPS said that its net income in the third quarter came in at £1.51 billion that translates to £1.72 per share. In the same quarter last year, its net income was capped at a lower £1.35 billion or £1.55 per share.

Adjusted for one-time items, the package delivery company earned £1.75 per share versus the year-ago figure of £1.59 per share. FactSet Consensus for UPS per-share earnings in Q3 stood at £1.46. In the prior quarter (Q2), the supply chain management company had posted a 4.7% increase in its net income.

The American multinational printed £16.34 billion of revenue in the third quarter that represents a 15.9% annualised growth. According to FactSet, experts had forecast a lower £15.55 billion of revenue for UPS in the recent quarter.

All three business segments performed better than forecasts

U.S. domestic package revenue, as per the Atlanta-headquartered company, saw a 15.5% year over year growth in the third quarter to £10.18 billion. At £3.15 billion, international package revenue was 17.0% higher than last year. Revenue from supply chain and freight in Q3 came in at £3.02 billion or 16.5% higher than the comparable quarter of last year.

FactSet Consensus for revenue from these three segments stood at £10.04 billion, £2.85 billion, and £2.76 billion in the third quarter, respectively. CEO Carol Tome commented on the financial report on Wednesday and said:

“Our results were fuelled by continued strong outbound demand from Asia and growth from small and medium-sized businesses.”

The company refrained from giving its guidance for the full year due to the Coronavirus uncertainty. In separate news from the United States, General Electric also revealed a 17% annualised decline in its third-quarter revenue on Wednesday.

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