UPS raises full-year revenue forecast to $92.6 billion — CNBC

United Parcel Service (UPS) beat Wall Street analysts’ expectations for the third quarter and raised its full-year forecast for the second consecutive time. UPS now expects consolidated revenue for the year to be approximately $92.6 billion, compared with its previous forecast of $91.2 billion.

Results exceed expectations

As CNBC reports, UPS’ adjusted earnings per share for July–September were $1.69, while analysts surveyed by LSEG expected $1.63. The company’s revenue reached $22.9 billion, compared with a forecast of $22.29 billion.

For the quarter ended September 30, UPS’ net income was $1.16 billion, or $1.37 per share. A year earlier, the company reported net income of $1.31 billion, or $1.55 per share. After adjustments for one-time expenses, earnings per share were $1.69.

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Segment growth and quarterly forecast

Revenue in UPS’ domestic segment rose by 4.5%, while international revenue increased by 7.1%. The supply chain solutions unit increased revenue by 18.2%; the company attributed this mainly to growth in freight forwarding and logistics services, particularly in healthcare.

UPS also forecasts fourth-quarter revenue of $25.7 billion. Previously, the company expected its domestic revenue in the third quarter to remain unchanged and average daily shipment volume in the domestic segment to decline due to a seasonal slowdown and the gradual reduction of its business volume with Amazon.

Chief Executive Officer Carol Tomé said the company is entering the holiday shipping season with the most automated and efficient network in its history. UPS is transforming its business, seeking to optimize it and make greater use of automation.