A driver for an independent contractor wears a protective mask while operating a delivery truck for delivery of the N95 Respirator Mask outside a ground sorting facility in Louisville, Kentucky, US on Monday April 13, 2020.
Luke Sharrett | Bloomberg Getty Images
UPS shares jumped more than 4% in premarket trading on Tuesday, after the company reported higher revenue and profits than expected for a better holiday, reflecting a surge in online shopping due to the Kovid-19 epidemic.
Revenue for the Atlanta-based logistics and delivery company jumped 21% to $ 24.9 billion during the fourth quarter ended December 31, marking a record for UPS as it posted unprecedented e-commerce sales during the holidays. Navigates to
The company’s domestic package division saw a 17.4% increase in year-over-year revenue as its network filled up with packages from online retailers including Amazon.
Based on estimates compiled by Refinitiv, how did UPS perform during the fourth quarter, as expected by investors:
- Adjusted EPS: $ 2.66 per share vs. $ 2.14 expected.
- Revenue: $ 24.9 billion vs. $ 22.87 billion expected.
The company reported a huge loss of $ 3.26 billion during the quarter after disclosing $ 5.6 billion in fees. Those costs include a mark-to-market pension charge of $ 4.9 billion, an after-tax charge of $ 114 million, and an importance charge of $ 545 million, related to the company’s sale of UPS freight.
UPS did not provide an outlook on its future earnings due to ongoing uncertainty from the epidemic.
“Our financial performance in the fourth quarter exceeded our expectations, and I thank all UPSers for their exceptional efforts to deliver industry-leading service through the holidays.” CEO Carol Tome said in an earnings statement.
The results come out of a shipping breaking season recorded by the epidemic. Shoppers were tempted with holiday sales in early October to spread the number of packages in the system at any time.
Many times, UPS told drivers to stop delivering packages at some large retailers such as Nike and Gap as they exceeded the capacity allocation set by the delivery company. UPS also imposed surcharges in an effort to compensate for the increased package volume and higher costs associated with the epidemic.
The company’s adjusted operating margin increased slightly during the quarter to 11.5%, although its domestic shipping unit’s margin fell to 8.8%.
After holiday delivery, UPS and rival FedEx began shipping Kovid vaccines from Pfizer and Moderna to the US in December, accelerating their health care delivery business.
Tome said, “As we see in last year’s New Year, we are optimistic. During the fourth quarter, we started transporting COVID-19 vaccines and we are ready to give hope and health to people around the world.” . “