United Parcel Service (UPS) reported third-quarter earnings that surpassed Wall Street forecasts, with adjusted earnings per share of $1.69 compared to the expected $1.63, and revenue of $22.9 billion exceeding the anticipated $22.29 billion. The company also raised its full-year revenue guidance to approximately $92.6 billion from $91.2 billion, reflecting confidence in its performance.
For the quarter ending September 30, UPS's net income was $1.16 billion, or $1.37 per share, a slight decline from $1.31 billion, or $1.55 per share, in the same quarter last year. The domestic segment saw a 4.5% revenue increase, while international revenue rose by 7.1%.
Notably, the supply chain solutions business experienced an 18.2% revenue increase, driven by growth in forwarding and logistics, particularly in healthcare. CEO Carol Tomé emphasized the company's strong position heading into the holiday shipping season, attributing this to a more automated and efficient network.
UPS's ongoing turnaround strategy under Tomé aims to create a leaner business model, which is crucial for sustaining growth in a competitive market