Shares of UPS (UPS) gained in pre-market trading after the company reported strong third-quarter results. The shipping and logistics company’s adjusted earnings increased by 12.1% year-over-year to $1.76 per share, above analysts’ expectations of $1.63 per share.
UPS Sees Growth in Both Business Segments in Q3
Furthermore, the company’s revenues grew by 5.6% year-over-year to $22.2 billion, compared to consensus estimates of $22.1 billion. As the holiday season approaches, the company is experiencing rising demand, leading to a rebound in shipping volumes.
In fact, UPS’s domestic segment generated revenues of $14.5 billion, up by 5.8% year-over-year, and comprised more than 65% of the company’s revenues in the third quarter. On the other hand, the company’s international business segment clocked revenues of $4.4 billion, up by 3.4% year-over-year.
UPS Updates Its FY24 Guidance
Looking ahead, the company expects its revenues to be around $91.1 billion and has lifted its adjusted operating margin forecast to approximately 9.6%. Moreover, UPS anticipates its dividend payments to be around $5.4 billion, subject to the approval of its Board of Directors. For reference, analysts have estimated UPS’s revenues to be $91.87 billion.
Is UPS a Good Stock to Buy Right Now?
Analysts remain cautiously optimistic about UPS stock, with a Moderate Buy consensus rating based on eight Buys, 10 Holds, and one Sell. Year-to-date, UPS has declined by more than 10%, and the average UPS price target of $143.12 implies an upside potential of 8.9% from current levels. These analyst ratings are likely to change following UPS’s results today.
