Shares of United Parcel Service (UPS) - Get Report jumped on Thursday after the company delivered strong second-quarter earnings, posting adjusted per-share earnings more than double what analysts were forecasting.
The Atlanta-based delivery company posted adjusted earnings per share of $2.13, well above the $1.07 a share expected by analysts polled by FactSet. Revenue increased 13.4% to $20.5 billion, a solid $3.5 billion above what analysts were forecasting.
In the U.S., adjusted operating profit came in at $1.21 billion vs. $1.22 billion last year; internationally, adjusted operating profit was $842 million vs. $665 million.
The better-than-expected numbers, driven by consumers and businesses relying on Big Brown for getting packages to their front doors during the pandemic, were a sharp left from the company’s first quarter, when despite being designated an essential service the delivery giant posted earnings that missed analysts’ forecasts.
“Our results were better than we expected, driven in part by the changes in demand that emerged from the pandemic, including a surge in residential volume, Covid-19 related healthcare shipments and strong outbound demand from Asia,” CEO Carol Tomé said.
U.S. package revenue rang in at $13.07 billion, an increase of 17% year over year, while international package revenue was $3.71 billion, up 5.7% from a year ago. U.S. average daily volume increased 22.8%, reaching 21.1 million packages per day, UPS said.
Cash from operations over the first six months of the year totaled $5.9 billion, while adjusted free cash flow came in at $3.9 billion.
Shares of UPS were up 10.63% at $136.83 in trading on Thursday.