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Investing.com – UPS (NYSE:UPS) stock was trading weaker by 2.4% in Tuesday’s premarket as a broadly strong quarter was spoiled slightly by disappointing revenue in the U.S. market.
U.S. revenue grew only 10%, while total revenue rose 14% to $23.42 billion, thanks to 30% growth in revenue from international packages.
This was higher than the estimated $23.19 billion and was led by European operations, where Covid-19-related factors once again dominated.
Delivery companies and logistics providers have raked in big revenue in the pandemic as remote working and online shopping have triggered a huge rise in demand for courier services. UPS has also benefited from orders to deliver vaccines this year. p
Adjusted diluted earnings per share rose 44% to $3.06, beating estimates of $2.79
A consolation for the company was that CEO Carol Tomé’s “better not bigger framework” focused on higher margins seemed to work. Revenue per piece in the U.S. rose by over 13%.
For 2021, the company is projecting a consolidated operating margin of just under 13%.
