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UPS Raises Annual Forecasts as Higher-Margin Parcels Drive Quarterly Profit Beat
UPS said higher-margin international shipments and supply-chain growth lifted third-quarter results, while adjusted earnings topped estimates by 6 cents a share.
- On Tuesday, United Parcel Service announced a 5.9% average rate increase for ground, air, and international services beginning December 21. The rate bump matches annual increases applied over the past three years.
- Tuesday's forecast raise follows UPS's decision to prioritize premium shipments and cut low-margin deliveries for Amazon while slashing $3 billion in costs this year. The company is repositioning for higher-margin growth.
- Consolidated revenue rose 6.7% to $22.9 billion, beating Wall Street expectations with an adjusted profit of $1.69 per share. CEO Carol Tomé said the results "demonstrate the continued strengthening of our business fundamentals."
- Small business shippers face a 4.5% rate hike and a 5% fuel surcharge on December 21. Paul Yaussy of Loop cautioned, "Don't plan around 5.9%. It's an average on base rates and won't reflect your actual cost."
- Rival FedEx revealed plans last month for a matching 5.9% rate hike effective January 4, 2027. UPS projects full-year consolidated revenue of approximately $92.6 billion amid industry-wide margin pressure.
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13 Articles
13 Articles
UPS raised its projections for the year and recorded revenues above what was expected in the third quarter, as recent restructuring efforts continued to generate results. Exclusive material for subscribers. To have full access, access the link of the material and register.
·Rio de Janeiro, Brazil
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UPS raises annual forecasts as higher-margin parcels drive quarterly profit beat
United Parcel Service raised its annual revenue and profit forecasts on Tuesday after \u200bbeating quarterly earnings estimates, helped by higher-margin international air shipments and a reduction in lower-margin deliveries for Amazon.com.
·Salt Lake City, United States
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Coverage Details
Total News Sources13
Leaning Left1Leaning Right1Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 17%
C 67%
R 16%
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