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United Parcel Service (UPS) posted stronger-than-expected third earnings Tuesday, whereas repeating its full-year revenue steerage, because of strong beneficial properties within the group’s home enterprise that offset weak point in provide chain gross sales.
UPS mentioned earnings for the three months ending in September had been pegged at $2.96 per share, up 9.2% from the identical interval final yr and firmly forward of the Avenue consensus forecast of $2.84 per share. Group revenues, the corporate mentioned, rose 4.4% to $24.2 billion, simply shy of analysts’ estimates of a $24.32 billion tally.
Home section revenues rose 8.2% to $15.374 billion, UPS mentioned, powered in get together by a 9.8% enhance in revenue-per-piece, a key trade metric. Worldwide revenues had been up 1.7% to $4.799 billion whereas provide chain options gross sales fell 6.3% to $3.988 billion.
Wanting into the present calendar yr, UPS reaffirmed its steerage for revenues of greater than $102 billion and earnings within the area of $14 billion.
“I wish to thank UPSers world wide for his or her unstoppable spirit and for persevering with to ship excellent service to our clients,” mentioned CEO Carol Tomé. “The macro atmosphere may be very dynamic, however we’re on observe to reaching our 2022 monetary targets by executing our technique and controlling what we will management.”
UPS shares had been marked 3.8% greater in pre-market buying and selling instantly following the earnings launch to point a gap bell value of $173.90 every.
Final month, UPS rival FedEx Corp (FDX) pulled its full-year earnings steerage following a shock quarterly replace that pegged fiscal first quarter earnings at $3.44 per share, nicely south of the Avenue consensus forecast of $5.14 per share, with revenues of $23.2 billion.
Moreover, citing softness in bundle volumes that accelerated over the summer season months, the group withdrew its June revenue forecast for the 2023 fiscal yr that noticed earnings of between $22.45 and $24.45 per share, though it can proceed to honor its $1.5 billion share buyback pledge.
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