Record surge in daily shipping volumes for UPS in 2Q
UPS is reporting a profit of $1.77 billion with the pandemic fueling a 21% surge in daily shipping volume, the largest quarterly increase ever recorded by the company.
The daily volume of goods shipped to homes, items that last year might have been purchased in stores, soared 65%.
"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,” said CEO Carol Tomé.
With thousands of retail stores ordered closed for safety reasons, the wave of new shipments to homes have swamped both UPS and its rival, FedEx. Toilet paper, cans of soup, candy, any type of impulse buy once made in stores, are being bought online and shipped rather than carried out of a store in a bag.
UPS in particular is in position to dominate after after Amazon.com, another company doing immense volume in the pandemic, cut ties with FedEx.
On a per-share basis, the Atlanta company on Thursday reported net income of $2.03. Earnings, adjusted for non-recurring costs, came to $2.13 per share.
That is $1.09 better than Wall Street had expected, according to a survey by Zacks Investment Research.
The company's stock rose 12% before the opening bell.
The package delivery service posted revenue of $20.46 billion, breezing past projections by more than $3 billion.
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Portions of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on UPS at https://www.zacks.com/ap/UPS
