UPS (UPS, Financial) delivered an impressive Q3 performance, with revenues climbing 5.6% to $22.2 billion, driven by solid gains across both domestic and international operations. Operating profit soared nearly 48%, reaching $2.0 billion, as the company's strategy to streamline operations, including offloading Coyote Logistics, paid off. With adjusted EPS jumping 12.1% to $1.76, UPS signaled a return to growth, overcoming an 18-month stretch of challenges.
In the U.S., a 5.8% revenue boost came from a surge in daily volumes, while international markets saw a 3.4% increase, helped by higher revenue per package. The supply chain solutions segment didn't miss out either, posting an 8% jump thanks to growing air and ocean freight activity. As the holiday season approaches, UPS's readiness to capitalize on peak demand is clear, setting the stage for continued momentum.
Looking ahead, UPS revised its 2024 outlook, now expecting $91.1 billion in revenue and a 9.6% non-GAAP operating margin. The company is keeping its foot on the gas, with $4 billion earmarked for capital investments and a projected $5.4 billion in dividends, aiming to drive shareholder value and sustain growth as it gears up for what promises to be a busy end to the year.
