UPS Boosts Guidance as Net Rises 90%

ATLANTA ( TheStreet) -- UPS ( UPS) said second-quarter earnings nearly doubled and it boosted its full-year guidance.

The overnight package carrier reported net income of $845 million, or 84 cents a share. Analysts surveyed by Thomson Reuters had estimated 77 cents. In the same period a year earlier, UPS earned $445 million, or 44 cents a share.

Revenue rose 12.7% to $12.2 billion; analysts had estimated $12 billion.

"UPS fired on all cylinders in the second quarter even in the face of a mixed global economic environment," said CEO Scott Davis, in a prepared statement.

Looking ahead, UPS raised its full-year 2010 guidance to between $3.35 and $3.45 a share. Analysts had been estimating $3.27 a share, with 26 estimates ranging between $3.04 and $3.46, according to Thomson Reuters.

"Despite the anticipated slow pace of the U.S. recovery and a cautious outlook for Europe, we are confident in our ability to grow the business and improve profits," said Chief Financial Officer Kurt Kuehn. "Therefore, we are raising our full year 2010 guidance with expected adjusted earnings growth of 45% to 50% per share."

During the second quarter, operating margin increased by 320 basis points to 11.5% while consolidated volume rose 4% to 948 million packages and revenue per piece rose 7%, reflecting higher base rates, fuel surcharge increases and heavier average shipment weight.

-- Written by Ted Reed in Charlotte, N.C.

More from Stocks

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

At End of May, Investors Signalling They May Stay Away

At End of May, Investors Signalling They May Stay Away

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever