Results and numbers
UPS topped Wall Street estimates in Q3, according to LSEG's survey. Adjusted earnings were $1.69 per share against $1.63 expected, and revenue came in at $22.9 billion versus a $22.29 billion consensus.
For the quarter ended Sept. 30, net income was $1.16 billion, or $1.37 per share, compared with $1.31 billion, or $1.55 per share, a year earlier. Sales rose 6.7% year over year.
What moved the revenue mix
Domestic revenue increased 4.5% and international revenue rose 7.1%. Supply chain solutions was the standout, climbing 18.2%, a gain UPS attributed chiefly to expanded activity in forwarding and logistics, particularly healthcare.
Earlier guidance from UPS called for third-quarter domestic revenue to be flat, with domestic average daily volume sliding amid seasonal softness and a continued glide down with Amazon.
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Guidance, holiday prep, and investor reaction
UPS raised its full-year consolidated revenue projection to about $92.6 billion from $91.2 billion and projected fourth-quarter revenue of $25.7 billion. That update follows an outlook increase last quarter.
With peak season nearing, Tomé characterized the consumer as resilient and said the Q3-to-Q4 change in average daily volume should track last year. She added that domestic average daily volume in the fourth quarter is expected to decline because of the reduction with Amazon, and nearly 70% of all packages will move through automation during the holidays.
Shares inched higher in morning trading after the update.
Why it matters for your portfolio
Results beat, guidance is higher, and automation is set to handle more of the holiday rush. The supply chain solutions unit and healthcare logistics add momentum alongside core domestic and international growth, while the company is planning for Amazon-related volume pressure.
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