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(Sharecast News) - United Parcel Service beat Wall Street expectations for third-quarter earnings and revenue on Tuesday, and guided above consensus for the fourth quarter as it looked to offset softer B2B demand with price increases.
The Atlanta-based logistics giant posted adjusted earnings of $1.74 per share for the three months to 30 September, ahead of analyst forecasts of $1.30 per share. Consolidated revenues came in at $21.41bn, topping expectations of $20.83bn.
UPS also reported an adjusted operating margin of 10%, up from 8.8% in Q2, though margins in its domestic segment slipped to 6.4% from 7%.
Looking ahead, the company said it expects fourth-quarter revenue of around $24bn, above the $23.8bn pencilled in by analysts, with adjusted operating margin seen between 11% and 11.5%.
UPS was currently in the process of its largest-ever operational overhaul, aiming to cut $3.5bn in costs by 2025 through site closures, job reductions and buyout offers to union drivers.
As of 1315 GMT, UPS shares were up 11.24% in pre-maket trding at $99.25 each.
Reporting by Iain Gilbert at Sharecast.com
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