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UPS Delivers Strong Third-Quarter Results and Lifts Guidance

United Parcel Service posts better-than-expected third-quarter earnings and raises guidance amid ongoing demand for e-commerce-related package deliveries.

United Parcel Service  (UPS) - Get United Parcel Service, Inc. Class B Report on Tuesday posted better-than-expected third-quarter earnings amid ongoing demand for e-commerce-related package deliveries that continue to be a driving force behind the economy’s rebound.

UPS said it earned $2.33 billion, or $2.71 a share on an adjusted basis, in the third quarter, vs. $54 million, or 6 cents a share, in the third quarter of 2020. Analysts polled by FactSet had been expecting earnings of $2.55 a share.

Revenue for the quarter totaled $23.2 billion, up 9.2% from $21.24 billion a year earlier and comfortably ahead of analysts’ forecasts of $22.6 billion.

For the third quarter of 2021, GAAP results include after-tax transformation and other charges of $54 million, equivalent to $0.06 per share.

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The results included charges of $54 million, or the equivalent of 6 cents a share. Year-to-date cash from operations was $11.8 billion, up 26.7% compared to the same period in 2020, with free cash flow of $9.3 billion, a 52.3% increase above the first nine months of 2020.

U.S. package revenue rang in at $14.2 billion, an increase of 7.4% year over year, while international package revenue was $4.72 billion, up 15.5% from a year ago. Supply chain solutions revenue was $4.26 billion, up 8.4%.

For 2021, UPS is said it now expects consolidated operating margin of approximately 13%, up from its previous forecast of 12.7%, and return on invested capital of approximately 29%, up from a 28% estimate at the end of the second quarter. It also forecast capital expenditures of about $4.2 billion vs. $4 billion in the second quarter.

At last check, shares of UPS were up 6.69% at $217.77. Year to date the stock is up 32.95%.