Shipping and freight company United Parcel Service Inc (NYSE:UPS) delivered better-than-expected results for both second-quarter profit and revenue, boosted by a surge in e-commerce demand in the US.
The company, which is based in Atlanta, posted earnings of US$1.94 per share on revenue of US$17.46bn, excluding a pre-tax charge of US$263mln related to its employees’ retirement plan.
Those results surpassed Wall Street’s estimate of US$1.93 per share on revenue of US$17.33bn.
Looking ahead, UPS still expects 2018 adjusted earnings to fall in the range of US$7.03 to US$7.37 per share.
A bright spot in the quarter was UPS’s domestic revenue, which jumped 6.3% to US$10.35bn, fueled by a pick-up in demand from e-commerce outlets.
UPS’s international unit also did well thanks to its European business, reporting a 14% jump in revenue of US$3.6bn and operating profit of US$618mln, which was its highest second-quarter operating profit ever.
Shares rose nearly 2% to US$114.50 right after the opening bell.
Contact Ellen Kelleher at ellen@proactiveinvestors.com