UPS’s quarterly earnings outpace as the pandemic spurs home deliveries

File Image: United Parcel Service (UPS) company logo, displayed on a screen on the New York Stock Exchange (NYSE) in New York, USA, October 22, 2019. REUTERS / Brendan McDermid

(Reuters) – United Parcel Service Inc UPS.N It exceeded earnings expectations on Wednesday, buoyed by soaring home deliveries due to the COVID-19 pandemic.

The company said average daily volumes in the US rose 13.8% as residential demand continued to be strong.

“Our results were driven by continued strong overseas demand from Asia and growth from small and medium-sized companies,” Chief Executive Carol Tomei said in a statement.

Last month, the company said it would employ more than 100,000 workers for the winter break season, which retailers are making great efforts to avoid overburdening the delivery network, which is already taxed by the online shopping that’s fueling the pandemic.

Net income rose to about $ 2 billion, or $ 2.24 per share, in the quarter ended September 30, compared with $ 1.75 billion, or $ 2.01 per share, a year earlier.

Excluding items, UPS gained $ 2.28 per share, beating the average analyst estimate of $ 1.90 a share, according to Refinitiv data.

Revenue rose to $ 21.24 billion from $ 18.32 billion in the same period a year earlier.

Co-reporting by Sanjana Shivdas in Bengaluru and Lisa Bertlin in Los Angeles; Edited by Aaron Coyeur

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