UPS Ends Seven-Quarter Losing Streak with Surprise Profit and Revenue Growth
The dog days of shipping are over — and UPS is reveling in the face of an early holiday shipping comeback. After seven quarters of stagnant or declining earnings, the global logistics leader has returned to revenue and profit growth, with domestic volumes rising at the “highest growth rate we’ve seen in more than three years,” according to CFO Brian Dykes.
- In the third quarter, UPS’s revenues rose 5.6% year-over-year — while its non-GAAP adjusted diluted earnings per share increased by 12.1% over the same period.
- The company attributes most of its growth to its supply chain solutions and domestic business segments, which saw revenues grow 8% and 5.8%, respectively.
Logistical daydream: The news of UPS’s positive results sent shares up by 4.8%. The results also boded well for competitor FedEx, as investors speculated that the uptick in domestic shipping revenues would not be limited to one carrier. While it’s too soon to declare a full comeback, the encouraging figures are uplifting for these two domestic shipping powerhouses, which have drastically underperformed this year. is down 12.8% YTD, while is up just 8%, leaving both trailing behind the S&P 500’s impressive 22.3% rise. With signs of recovery in the air, could this be the turning point where UPS and FedEx finally start delivering not just packages but also returns for their investors?
