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