United Parcel Service (UPS) stock is comfortably higher in Thursday's session after the international logistics giant beat top- and bottom-line expectations for its third quarter.
In the three months ended September 30, UPS reported a 5.6% year-over-year increase in revenue to $22.2 billion, thanks in part to a 5.8% jump in revenue and a 6.5% rise in average daily volume for its U.S. domestic segment. The company said earnings per share (EPS) were up 12.1% from the year-ago period to $1.76.
"After a challenging 18-month period, our company returned to revenue and profit growth," said UPS CEO Carol Tomé in a statement. "Peak season is nearly upon us, and we are ready to deliver another successful holiday season and continue the progress we demonstrated in the third quarter."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results came in higher than the $22.1 billion in revenue and earnings of $1.63 per share that analysts were anticipating, according to CNBC.
UPS also updated its full-year outlook to reflect its performance in the third quarter and its recently completed disposition of Coyote Logistics. It now anticipates revenue of approximately $91.1 billion for all of 2024, down from its previous forecast for revenue of $93 billion. Operating margin is expected to arrive at 9.6% vs the 9.4% it guided for in its Q2 report.
Is UPS stock a buy, sell or hold?
UPS has vastly underperformed the broader market in 2024. The large-cap stock is down 13% on a total return basis (price change plus dividends) vs the S&P 500's 23% gain.
But Wall Street is betting on a quick turnaround for the industrial stock. According to S&P Global Market Intelligence, the average analyst target price for UPS stock is $145.17, representing implied upside of more than 5% to current levels. Additionally, the consensus recommendation is a Buy.
Bernstein analyst David Vernon is one of those with an Outperform (Buy) rating on UPS. In an October 21 note, Vernon wrote that the company has enough growth potential to warrant the bullish outlook. Additionally, its fat 5% dividend yield "is worth more in a falling rate environment."
Related Content
-
Thinking of a New Car in Retirement? Why GM's Latest News MattersThe retirement car conundrum: buy outright or finance your next ride?
-
How the New $250 Visa Integrity Fee Could Impact US TravelersA new $250 visa integrity fee will soon be levied on some visitors to the US. The ripple effect could impact Americans, too.
-
Dow Leads as Merck, Amgen Gain: Stock Market TodaySecond-quarter earnings season remained top of mind Tuesday, with Coca-Cola and GM among those reporting.
-
GM Not Planning to Raise Car Prices Despite Tariff Hit, CFO SaysCar Prices GM stock's second-quarter earnings said the company took a $1 billion hit from tariffs, but the CFO said they won't raise prices on cars.
-
5 Ways Portfolios Have Been Impacted In Trump's First Six Months in OfficePresident Trump's first six months in office have kept investors on their toes thanks to whipsaw tariff policies and a massive tax cut and spending bill.
-
We Check on Our Favorite Bond Funds Amid Tariff VolatilityBond volatility has ramped up amid debt and inflation worries. Most of our top bond ETFs are outperforming, while one laggard presents a unique opportunity.
-
Are You a Doormat at Work? The Hidden Cost of Excessive People-PleasingI talked to the author of the upcoming book 'Fawning,' and she explains how the 'fawn' response can lead to blurred boundaries, difficulty asserting needs and a loss of self, with serious emotional consequences like anxiety and PTSD.
-
A Guide to Personalizing Your Retirement Plan for Maximum ImpactThis strategy challenges conventional retirement rules of thumb by combining traditional savings, home equity and annuities to provide higher income and liquid savings and help cover long-term care costs.
-
How Advisers Can Rev Up Sales With MedicareHelp boost your revenue stream by integrating Medicare solutions into your financial practice for long-term client value and profits.
-
Stock Market Today: S&P 500 Hits High After Verizon EarningsThe Nasdaq also notched a new high on Monday, while the Dow finished with a marginal loss.
