UPS leaps 11% after soaring delivery demand fuels earnings beat
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- UPS surpassed second quarter revenue and profit estimates on Thursday as the coronavirus pandemic boosted domestic shipments.
- Demand in Asia and strong healthcare shipping also added to earnings, said CEO Carol Tomé.
- The company foregoing forward-looking, cited the ongoing uncertainties surrounding the pandemic.
- The shares even rose 11.4% in early trading.
- See UPS trading live here.
UPS reported quarterly numbers on Thursday that beat analysts’ estimates for sales and profits as the coronavirus pandemic fueled strong demand for home deliveries.
Better-than-expected demand in Asia and strong healthcare shipping supported quarterly performance, UPS said in its report. The cross-border e-commerce business in Europe also improved.
The company’s shares rose 11.4% early Thursday.
Here are the key numbers:
Revenue: $ 20.46 billion versus consensus estimate of $ 17.48 billion, according to Reuters
Earnings per share: $ 2.13 versus $ 1.07 estimate
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The company refrained from moving forward. UPS met its 2020 targets in April.
“Our results were better than expected, partly due to the changes in demand that resulted from the pandemic, including an increase in housing volume, COVID-19-related health supplies and strong demand from Asia,” said CEO Carol Tomé in the report.
According to UPS, the average daily volume in the US increased 22.8% to 21.1 million packages per day. Domestic delivery demand rose 65.2% as consumers continued to work from home and increased online shopping activity.
UPS closed at $ 123.68 on Wednesday, up around 6% year-to-date.
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