By Dhirendra Tripathi
Investing.com – United Parcel stock (NYSE:UPS) surged 12% Tuesday after the logistics provider gave a rosy outlook for the year following a strong fourth quarter.
Fourth-quarter consolidated revenue rose more than 11% to touch nearly $28 billion, riding on higher volumes and price increases. Average revenue per piece rose by more than 11%.
Under Carol Tome, who came to the helm in June 2020, the company has focused on higher margins and less on volume customers who look for discounts. That strategy allowed the company to record a 35% jump in quarterly EPS to $3.59 as the company earned more on U.S. as well as international packages, making use of high demand for its services while many geographies still struggle with Covid-led supply chain issues.
For the full year, the company expects consolidated revenue of about $102 billion compared to $97 billion in 2021. Adjusted operating margin is seen improving a tad to 13.7%.
The company’s decision to boost its quarterly dividend by 49% is also adding to the gains in the stock price. UPS will also buy back shares worth at least $1 billion this year, the company said.