UPS exceeds expectations in Q3 and raises annual forecast

US delivery giant UPS, riding a growth of online commerce amid the Covid-19 pandemic, on Tuesday published higher-than-expected results and revised upwards its annual forecast.

The Atlanta-based group posted sales of $23.2 billion from July to September, up 9.2 per cent from last year and higher than the $22.6 billion expected by the market.

Its revenues grew 15.5 per cent on the international market and 7.4 per cent on the US market, which represents the main source of its income.

Activities related to supply chain solutions grew 8.4 per cent. The group’s net profit was $2.3 billion for the quarter.

Per-share profit, excluding exceptional items, was $2.71, better than the $2.54 expected by analysts.

The results have allowed UPS to increase its operating margin estimates for 2021: it should now stand at 13 percent, compared with 12.7 percent forecast in the previous quarter.

UPS stocks climbed nearly five percent in electronic trading before Wall Street opened.