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UPS revenue tops estimates as pandemic drives e-commerce deliveries

Published 04/27/2021, 06:32 AM
Updated 04/27/2021, 06:51 AM
© Reuters. A UPS employee checks his vehicle at a UPS diesel fuel pump facility in Los Angeles
UPS
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(Reuters) - United Parcel Service (NYSE:UPS) topped Wall Street estimates for quarterly revenue on Tuesday, as the world's biggest parcel delivery company benefited from a surge in online purchases during the COVID-19 pandemic, sending its shares up 6%.

UPS has been experiencing a boom in e-commerce deliveries as consumers staying at home during the pandemic order everything from exercise bikes to sofas.

Rival Deutsche Post (OTC:DPSGY) last month raised its medium-term financial targets, predicting that the boom in ecommerce driven by the coronavirus outbreak would continue and world trade would gradually recover.

UPS, which is also delivering COVID-19 vaccines, said revenue in its U.S. domestic unit rose 22.3%, led by growth from small- and medium-sized businesses.

Excluding items, the company earned $2.77 per share.

© Reuters. A UPS employee checks his vehicle at a UPS diesel fuel pump facility in Los Angeles

Total revenue rose 27% to $22.9 billion, beating estimates of $20.49 billion, according to Refinitiv data.

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