UPS stock rises after mixed third quarter earnings
The delivery service adjusted its capital expenditures expectation to $5 billion
Adviser Investments portfolio manager Adam Johnson and former Tether CEO Reeve Collins on where they see growth in the markets.
Shares for the United Parcel Service rose Tuesday morning after releasing a mixed third-quarter earnings report.
Despite growing concerns over softening demand and inflation, the shipping giant reaffirmed it was on track to meet its 2022 financial goals. Moreover, UPS will be joining its competitor FedEx in raising shipping rates by 6.9% due to increased costs.
Quarterly revenue grew by 4.2% compared to the third quarter of 2021, with consolidated revenues of $24.2 billion and consolidated operating profit increased by 7.5% to $3.1 billion.
"I want to thank UPSers around the world for their unstoppable spirit and for continuing to deliver outstanding service to our customers," said Carol Tomé, UPS CEO, in a statement.
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The United Parcel Service adjusted its capital expenditures to $5 billion, decreasing from its prior expectation of $5.5 billion. (Photographer: Michael Nagle/Bloomberg via Getty Images / Getty Images)
"The macro environment is very dynamic, but we are on track to achieving our 2022 financial targets by executing our strategy and controlling what we can control," Tomé added.
The company adjusted its capital expenditures to approximately $5 billion, down from its previous expectation of $5.5 billion, and dividend payments are estimated to be $5.2 billion. The supply chain solutions revenue decreased by 6.3% as a result of air and ocean freight forwarding, according to the report.
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Revenue for the U.S. domestic segment grew by 8.2% due to a 9.8% increase in revenue per piece. International segment revenue was 1.7% higher, alongside a revenue per piece growth of 6.4%.
UPS stood by its end-of-the-year financial target of approximately $102 billion with an adjusted operating margin of 13.7% and adjusted return on invested capital higher than 30%.