UPS Posts Mixed Bag Q3 Earnings On Higher Delivery Prices; Sticks To Annual Guidance

United Parcel Service Inc UPS reported Q3 FY22 sales of $24.2 billion, +4.2% Y/Y, slightly missing the consensus of $24.42 billion.
Adjusted EPS improved by 10.3% Y/Y to $2.99, beating the consensus of $2.87.
Consolidated operating profit was $3.1 billion, +7.5%, and up 6% on an adjusted basis.
U.S. Domestic Segment revenue increased by 8.2% Y/Y to $15.37 billion, driven by a 9.8% increase in revenue per piece. The adjusted operating margin was 11%.
International Segment revenue increased by 1.7% Y/Y to $4.79 billion, driven by a 6.4% increase in revenue per piece. The adjusted operating margin was 20.9%.
Supply Chain Solutions Segment revenue decreased 6.3% to $3.99 billion due to air and ocean freight forwarding declines, and the adjusted operating margin reached 11.5%.
"The macro environment is very dynamic, but we are on track to achieving our 2022 financial targets by executing our strategy and controlling what we can," UPS Chief Executive Carol Tomé said.
FY22 Outlook reaffirmed: For the full year 2022, the company reaffirms its consolidated financial targets of revenue of around $102 billion, an adjusted operating margin of about 13.7%, and an adjusted return on invested capital above 30%.
Price Action: UPS shares are up 2.89% at $172.40 during the premarket session on Tuesday.
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