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UPS Gains Premarket As Pandemic-Led Deliveries Drive Earnings Higher

Published 04/27/2021, 08:20 AM
Updated 04/27/2021, 08:22 AM
© Reuters.

By Dhirendra Tripathi

Investing.com – UPS (NYSE:UPS) shares were trading at new highs for the year in premarket Tuesday after the company reported earnings higher than estimates.

Consolidated operating profit at the logistics company was $2.8 billion, up 158%. Diluted earnings per share were $5.47 for the quarter, up 141% on an adjusted basis.  Consolidated revenue rose 27% to $22.9 billion.

The company’s lack of guidance owing to “continued economic uncertainty” did little to subdue sentiment. It reaped the benefit of pandemic-driven e-commerce in the quarter - including fees for the delivery of Covid-19 vaccines for the first time

Consolidated average daily volume in the March quarter increased 14.3% year-on-year.

UPS reaffirmed its planned capital expenditure of $4 billion for 2021. It will repay $2.5 billion in debt in 2021, which includes $1.5 billion it paid in the first quarter.

 By 8:45 AM ET, the shares were indicated at $190.50, up 8.4% from Monday's close. UPS’s 52-week high is $181.19.

Latest comments

At the expense of its hourly employees who are working 12 hours just about every day.
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