Investors in United Parcel Service (UPS) were thrilled by surprisingly good quarterly figures and a confident outlook on Tuesday.
The US logistics group UPS expects a decline in sales and profits in the final quarter. However, these targets are above market expectations. And UPS also performed better than expected in the third quarter. The share rose by 12.16 percent to $100.07 in premarket trading on the NYSE, also pulling up the shares of competitors DHL and FedEx.
According to UPS, sales in the fourth quarter are expected to be around 24 billion US dollars (20.7 billion euros), the company announced on Tuesday. The value would therefore be weaker than it has been for years. In the corresponding quarter of the previous year, revenues were more than $25 billion. Boss Carol Tomé expects the margin for adjusted operating profit to be 11 to 11.5 percent in the last three months of 2025. That would also be a deterioration.
In the third quarter, sales amounted to $21.4 billion, almost 4 percent below the same period last year. The adjusted operating margin improved from 8.9 to 10 percent. The bottom line was a profit of $1.3 billion, 15 percent less than a year earlier. This was due, among other things, to the costs of converting the delivery network and the group’s transformation program.
UPS has been suffering from lower demand for months, which is, among other things, a result of US President Donald Trump’s customs policy. The company is therefore currently trying to concentrate on higher-margin business areas and reduce costs. In this way, UPS wants to position itself more stable in the long term. Experts therefore viewed the surprisingly strong quarterly results that have now been published as an indication that this plan could work.
UPS suspended its annual forecast in the spring because the impact of the US tariff decisions on the company cannot be foreseen. If you add up the results after nine months and the goals for the final quarter, the result is sales of a good $88 billion for 2025, which would be a decline of a good 3 percent. The operating margin was 9.3 percent in 2024. At the end of September, UPS now reported it at 8.2 percent.
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