UPS leaps 11% after soaring delivery demand fuels earnings beat
- UPS beat estimates for second-quarter revenue and profits on Thursday as the coronavirus pandemic boosted domestic deliveries.
- Demand in Asia and strong healthcare shipping activity also fueled the earnings win, CEO Carol Tomé said.
- The company refrained from providing forward guidance, citing ongoing uncertainties surrounding the pandemic.
- Shares rallied as much as 11.4% in early trading.
- Watch UPS trade live here.
UPS reported quarterly figures on Thursday that beat analyst estimates for revenue and profits as the coronavirus pandemic fueled strong demand for home deliveries.
Better-than-expected demand in Asia and strong health care shipping activity bolstered the quarterly performance, UPS said in its report. Cross-border e-commerce business in Europe also improved.
The company's shares leaped as much as 11.4% in early Thursday trading.
Here are the key numbers:
Revenue: $20.46 billion, versus the $17.48 billion consensus estimate according to Reuters
Earnings per share: $2.13, versus the $1.07 estimate
The company refrained from providing any forward guidance. UPS pulled 2020 targets in April.
"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 in the report.
Average daily volume in the US climbed 22.8% to 21.1 million packages per day, UPS said. Domestic delivery demand spiked 65.2% as consumers continued to work from home and boost online shopping activity.
UPS closed at $123.68 on Wednesday, up roughly 6% year-to-date.
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