United Parcel Service Earnings: UPS Stock Soars 18% on Great Earnings

United Parcel Service (NYSE:UPS) earnings for the second quarter of fiscal year 2020 have UPS stock skyrocketing on Thursday morning. This comes after reporting adjusted earnings per share (EPS) of $2.13, which crushed Wall Street’s estimate of $1.07. Also, the company’s revenue of $20.46 billion is way above analysts’ estimate of $17.48 billion for the quarter.

Close up of UPS logo printed on a delivery truck; partial view of the driver sitting at the wheel, waiting at a red traffic light in south San Francisco bay

Source: Sundry Photography / Shutterstock.com

Moreover, UPS reported GAAP EPS of $2.03 for the period.

Now, let’s take a closer look at the most recent United Parcel Service earnings report.

  • Adjusted per-share earnings are up 8.7% from $1.96 during the same time last year.
  • Revenue comes in 13.4% higher than the $18.05 billion from the first quarter of 2019.
  • Operating income of $2.21 billion is a 3.3% rise year-over-year from $2.16 billion.
  • The United Parcel Service earnings report also includes a net income of $1.77 billion.
  • That’s a 4.7% jump from the company’s net income of $1.69 billion in the same period of the year prior.

Carol Tomé, CEO of United Parcel Service, said this in the earnings report:

“Our results were better than we expected, driven in part by the changes in demand that emerged from the pandemic, including a surge in residential volume, COVID-19 related healthcare shipments and strong outbound demand from Asia. UPSers are keeping the world moving during this time of need and I want to thank our team for their hard work and outstanding efforts to serve our customers, our communities and each other.”

Moreover, the company said it is not including guidance due to the ongoing effects of the novel coronavirus. In turn, United Parcel Service CFO Brian Newman said this on the topic:

“Using the scale and flexibility of our global integrated network, we successfully managed operational challenges throughout the quarter.  Moving forward we are focusing on efficiency and revenue quality to improve U.S. operating margins longer term. Our liquidity and cash position remain strong, allowing us to invest in enabling capabilities through this time of unprecedented business disruption.”

Meanwhile, Wall Street is calling for EPS of $5.39 on revenue of $74.14 billion during FY2020 for UPS.

UPS stock was up almost 17.5% as of Thursday morning.

Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/07/united-parcel-service-earnings-ups-stock-soars-18-on-great-earnings/.

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