UPS raises outlook in sign of strength for holiday season

UPS Inc. boosted its financial guidance for the year above Wall Street’s estimates, suggesting the courier expects to benefit from high prices and resilient demand through the holiday season. Revenue will be about $92.6 billion this year, up from a prior forecast of $91.2 billion, UPS said Oct. 27 in a statement as it reported quarterly results. That beat the $91.8 billion average of analyst estimates compiled by Bloomberg. The company also raised its adjusted earnings guidance. The improved outlook is a sign that UPS is optimistic heading into the final months of the year, even as inflationary pressures mount. The company, which is working to recover from a multiyear stretch of muted demand in the package-shipping market, is executing an overhaul of its delivery network designed to cut costs and improve efficiency. With the operational improvements, UPS is “entering the holiday shipping season from a position of strength,” CEO Carol Tomé said in the statement. UPS shares rose 2% as of 6:24 a.m. before regular trading in New York. Adjusted earnings in the third quarter were $1.69 a share, UPS said, beating the $1.63 average of analyst estimates. Revenue rose to $22.9 billion, also better than expected. UPS Quotes by TradingView See more transportation stock listings The results topped estimates despite ongoing tariff-related demand pressure, as well as high fuel costs resulting in part from the US war in Iran. The company has the flexibility to implement fuel surcharges to offset the higher costs, though the extent of its pricing power is an open question. Demand surcharges are also…

This story was originally published by Transport Topics. Read the full story at Transport Topics →