United Parcel Service revenues jumped 15.9% in the third quarter of the fiscal year.
The parcel delivery service reported a net profit of £1.51 billion in the third quarter.
UPS’s share price has now risen by more than 35% year-on-year.
United Parcel Service Inc. (NYSE: UPS) on Wednesday released its third-quarter fiscal quarter earnings report, which exceeded analysts’ estimates for profit and revenue. The company said that all three business segments performed better than forecasted in the final quarter.
The company’s shares fell nearly 5% in pre-market trading and lost another 2% when the market opened. In the year to date, the U.S. company has now risen more than 35% on the stock market. Learn more about the value investing strategy.
At the time of writing, UPS is valued at £87 billion and has a price-to-earnings ratio of 31.86.
UPS 3rd quarter financial results compared to analysts’ estimates
UPS stated that its third quarter net profit was £1.51 billion, or £1.72 per share. For the same quarter last year, net profit was capped at a lower level of £1.35 billion or £1.55 per share.
Adjusted for non-recurring items, the parcel delivery company earned £1.75 per share compared with £1.59 per share in the same period last year. The FactSet Consensus for UPS’s earnings per share for the third quarter was £1.46. In the previous quarter (Q2), the supply chain management company had reported a 4.7% increase in net profit.
The U.S. multinational printed revenues of £16.34 billion in the third quarter, representing annualized growth of 15.9 percent. According to FactSet, experts had predicted lower revenues for UPS in the past quarter of £15.55 billion.
All three business segments performed better than forecast
Domestic parcel revenue in the U.S. rose 15.5% year-on-year to £10.18 billion in the third quarter, according to the Atlanta-based company. At £3.15 billion, revenue from international parcels was 17.0% higher than in the previous year. Supply chain and freight revenue in the third quarter was £3.02 billion, up 16.5% on the same quarter last year.
The FactSet Consensus for revenue from these three segments for the third quarter was £10.04 billion, £2.85 billion and £2.76 billion respectively. CEO Carol Tome commented on the financial report on Wednesday and said
“Our results were fueled by continued strong foreign demand from Asia and the growth of small and medium-sized enterprises.
Due to the uncertainty of the coronavirus, the company refrained from issuing its forecast for the full year. In separate news from the United States, General Electric also announced on Wednesday an annualized third quarter revenue decline of 17%.