Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

UPS beats quarterly profit estimates, raises operating margin forecast

admin by admin
October 24, 2024
in Stock
0
UPS beats quarterly profit estimates, raises operating margin forecast
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter

(Reuters) -United Parcel Service surpassed Wall Street estimates for quarterly profit and raised its full-year adjusted operating margin forecast on Thursday, after it hived off its volatile truckload brokerage business, Coyote Logistics.

Shares of the company, seen as a bellwether for the global economy, were up more than 5% in premarket trading.

UPS is seeing year-on-year volume growth in the U.S. in the second half of the year, following nine quarters of weak demand since the end of the early pandemic e-commerce surge in late 2021.

However, the bulk of the growth ahead of the peak holiday season has been driven by new e-commerce entrants, identified by industry experts and shoppers as China-linked bargain retailers Shein and Temu.

This has exacerbated the shift from premium air services to less expensive ground services and then to the even more low-profit SurePost services, where UPS picks up packages and hands about 60% of them off to the U.S. Postal Service for final delivery.

The company had slashed its full-year adjusted operating margin target to 9.4% in July, despite an uptick in U.S. volumes because of the shift. It now expects a full-year operating margin of 9.6%.

UPS saw a 6.5% growth in average daily volumes in its domestic segment in the third quarter. Its adjusted operating margin of 8.9% was above last year’s 7.7%, on cost cuts.

The parcel delivery firm reported adjusted profit per share of $1.76, compared to last year’s $1.57 per share and above analysts’ average estimate of $1.63 per share.

Consolidated revenue of $22.25 billion was also above analysts’ average estimate of $22.14 billion.

UPS has been onboarding the United States Postal Service air cargo business, which it took over from rival FedEx (NYSE:FDX), after its contract expired on September 29.

UPS expects the five-year USPS contract to be profitable in its first year.

This post appeared first on investing.com

Previous Post

Boeing shares fall after workers reject latest offer

Next Post

If you invest $1,000 in Snap stock today, here’s your 2025 return

admin

admin

Next Post
If you invest $1,000 in Snap stock today, here’s your 2025 return

If you invest $1,000 in Snap stock today, here’s your 2025 return

Trending News

Dollar sees best day in 4 years as Trump wins 2024 election; euro plummets

Dollar sees best day in 4 years as Trump wins 2024 election; euro plummets

November 6, 2024
China boosts export controls on dual use items, state media says

China boosts export controls on dual use items, state media says

October 19, 2024
US stocks open in red amid Trump’s new tariff demands

US stocks open in red amid Trump’s new tariff demands

May 23, 2025
Subscribe to Insightful Word


    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025
    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    June 26, 2025
    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    June 26, 2025

    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025

    Latest News

    • S&P 500 nears record high despite headwinds: key drivers behind the surprise rally
    • Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high
    • S&P 500 nears record high as Wall Street opens higher amid tech momentum

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.