UPS results get a boost from higher shipping prices

Oct 26 (Reuters) – United Parcel Service Inc reported better-than-expected quarterly earnings and income on Tuesday, bolstered by robust e-commerce demand that has allowed the supply big to boost transport costs and cherry-pick extra worthwhile prospects.

The Atlanta-based agency additionally raised its full-year adjusted working margin outlook to about 13% from about 12.7%, a month after rival FedEx Corp reduce its revenue outlook on labor shortages.

“Given considerations on community efficiencies and working efficiency into the quarter, we view right this moment’s outcomes and outlook favorably,” Wells Fargo analyst Allison Poliniak-Cusic stated in a notice.

Shares of UPS have been up 4.5% earlier than the opening bell. FedEx rose 1.6%.

Each UPS and FedEx are delivering report variety of e-commerce packages since COVID-19 shifted buying on-line, forcing them to make a beeline for a restricted variety of staff together with up-and-coming rival Amazon.com Inc.

Whereas FedEx recorded a $450 million improve in prices associated to staffing issues, UPS has benefited from having a unionized labor, which is among the many highest paid within the trade.

UPS has additionally moved to beef up its supply operations, with plans to purchase Roadie, a crowd-sourced, same-day supply firm whose main shoppers embody dwelling enchancment chain Dwelling Depot .

Income from UPS’ U.S. operations, its greatest market, rose 7.4%, serving to the corporate to put up whole income of $23.18 billion for the third quarter ended Sept. 30. Analysts on common anticipated income of $22.56 billion.

On an adjusted foundation, working revenue was $2.71 per share, above the common analyst estimate of $2.55, in keeping with Refinitiv I/B/E/S information.

Reporting by Lisa Baertlein in Los Angeles and Abhijith Ganapavaram in Bengaluru; Modifying by Maju Samuel

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