UPS quarterly results are in and Wall Street is happy with this earnings surprise.
“We’re pleased to announce another quarter of improved profitability and strong cash generation. This quarter, earnings per share increased 23% to $1.94,” said UPS CEO, David P. Abney, in the Q2 2018 earnings call.
Just like their FedEx competitor, UPS’ increased revenue is driven by the ever-growing sphere of e-commerce shopping and charging more to deal with it.
The key takeaways
- UPS earned $1.94 per share, beating Wall Street’s estimate of $1.93
- 6 percent revenue increase to $17.46 billion, surpassing the estimate of $17.33 billion
- U.S. domestic revenue increased 6.3% to $10.35 billion
- The business unit showed a decrease in operating profit caused by planned increases in pension expense and cost for network projects. UPS is focused on improving efficiency and high-quality growth and anticipate spending between $6.5 and $7 billion on network improvements, and confidently predict achieving their full-year adjusted earnings per share target.
Abney mentioned that several initiatives (like strategizing on how to charge shippers even more) are underway to improve their bottom-line results.
Speaking of the bottom-line, 2019 rate increases will be announced soon and here before you know it. The time is now to take matters into your own hands and adopt initiatives to improve your bottom-line results. The carriers don’t make it easy to help you understand and mitigate any unexpected impacts, but VeriShip can.
We’ll show you how rate increases and new surcharges will affect your business by analyzing your data and shipping profile trends with our one-of-a-kind Simulation Engine.
Smarter shipping is within reach. Contact us today.