United Parcel Service (NYSE:UPS) trickled higher in early trading on Tuesday after a mixed Q3 earnings report. While UPS (UPS) said the macro environment is very dynamic, the shipping giant noted that it is on track to achieve its 2022 financial targets.
Revenue rose 4.2% Y/Y during the quarter to $24.2B and consolidated operating profit was 7.5% higher to $3.1B.
The U.S. domestic segment saw a 8.2% increase in revenue, driven by revenue per piece being up 9.8% in the U.S. Operating margin for the segment was 11.0%
International segment revenue was up 1.7% with revenue per piece 6.4% higher.
The supply chains solution segment saw a 6.3% decline in revenue.
Looking ahead, UPS (UPS) reaffirmed its consolidated financial targets of revenue of around $102B (vs. $101.61B consensus), an adjusted operating margin of about 13.7% and adjusted return on invested capital above 30%. For the year, the company now expects capital expenditures to be around $5B. Dividend payments are expected to be around $5.2B.
Shares of UPS gained 0.30% premarket to $168.05. Rival FedEx (FDX) was 0.03 higher to $154.80.
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