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UPS Raises Guidance Again as Pricing Outruns Volume

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UPS Raises Guidance Again as Pricing Outruns Volume

UPS raised its full-year guidance for the second time this year as the logistics giant aims to squeeze more money out of the fewer packages flowing through its network.

The logistics giant expects annual revenue of roughly $92.6 billion, which would represent a 4.4 percent increase over the year prior. UPS previously guided for $91.2 billion in total revenue.

Domestically, revenue per package jumped 6.1 percent in the third quarter after the company completed the 18-month glide-down of its less-profitable Amazon volumes, with total average daily volumes (ADV) moved in the U.S. declining 3.3 percent. Revenue per piece outperformed the adjusted cost to ship a piece, which rose 5.5 percent in the quarter to $13.32 per package.

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“Better is truly better than bigger,” said UPS CEO Carol Tomé in a Tuesday morning earnings call. “We still have work to do, but we’ve moved through an important inflection point. We know where we’re going.”

According to Tomé, the performance in the second and third quarters has demonstrated that the parcel shipping company’s premium growth strategy is working.

The upward revision—alongside quarterly revenue and earnings figures that beat Wall Street estimates—sent the company’s stock up nearly 6 percent in Tuesday trading.

9 billion in the quarter ended Sept. 37 per share. 69.



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