United Parcel Service Earnings: UPS Stock Soars on Strong Profit

UPS beat EPS and revenue estimates for Q2

United Parcel Service earnings for the second quarter of 2019 have UPS stock heading higher on Wednesday.

United Parcel Service Earnings: UPS Stock Soars on Strong Profit
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United Parcel Service (NYSE:UPS) reported earnings per share of $1.96 for the second quarter of the year. This is an increase over the company’s earnings per share of $1.94 from the same time last year. It was also good news for UPS stock by beating out Wall Street’s earnings per share estimate of $1.92 for the quarter.

United Parcel Service earnings for the second quarter of 2019 have net income coming in at $1.69 billion. This is up from the company’s net income of $1.49 billion reported in the second quarter of 2018.

The United Parcel Service earnings report for the second quarter of the year also includes revenue of $18.05 billion. That’s better than the delivery company’s revenue of $17.46 billion reported in the same period of the year prior. It was also a boon to UPS stock by coming in above analysts’ revenue estimate of $17.97 billion for the quarter.

United Parcel Service notes that there was one major factor that resulted in the strong earnings report. This is demand from e-commerce companies for use of its next-day delivery service. It also points out that greater network efficiencies are continuing to result in lower cost per piece, which is another benefit.

“Demand for faster delivery is a structural change in our industry,” David Abney, UPS chairman and CEO, said in a statement. “Anticipating this change, our additional air capacity and modernized network enabled this growth to have a positive impact on profitability and positions UPS well to serve the growing needs of the market.

UPS stock was up 7% as of Wednesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2019/07/united-parcel-service-earnings-up-ups-stock/.

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