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UPS Falls As Revenue Growth In US Disappoints

Published 07/27/2021, 08:31 AM
Updated 07/27/2021, 08:32 AM
© Reuters.

© Reuters.

By Dhirendra Tripathi

Investing.com – UPS (NYSE:UPS) stock was trading weaker by 2.4% in Tuesday’s premarket as a broadly strong quarter was spoiled slightly by disappointing revenue in the U.S. market. 

U.S. revenue grew only 10%, while total revenue rose 14% to $23.42 billion, thanks to 30% growth in revenue from international packages. 

This was higher than the estimated $23.19 billion and was led by European operations, where Covid-19-related factors once again dominated.

Delivery companies and logistics providers have raked in big revenue in the pandemic as remote working and online shopping have triggered a huge rise in demand for courier services. UPS has also benefited from orders to deliver vaccines this year. p 

Adjusted diluted earnings per share rose 44% to $3.06, beating estimates of $2.79

A consolation for the company was that CEO Carol Tomé’s “better not bigger framework” focused on higher margins seemed to work. Revenue per piece in the U.S. rose by over 13%.

For 2021, the company is projecting a consolidated operating margin of just under 13%.

 

 

Latest comments

A quantum of LIGHT shining on a darkening planet ?? : yes.
Good quarter, we are also headed into holiday season, soon at 240+
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