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United Parcel Service (NYSE:UPS) shares dipped on Tuesday despite beating on top and bottom lines for the second quarter and reaffirming full-year guidance.
The Atlanta- based company posted non-GAAP EPS of $3.29 for the second quarter, beating estimates by $0.13, alongside $24.8B in revenue, exceeding expectations by $210M. The higher revenue and profits were aided by an 11.9% increase in revenue per piece to overcome lower volumes.
“While the external environment is ever changing, our better not bigger strategic framework has fundamentally improved nearly every aspect of our business, enabling greater agility and strong financial performance,” Carol Tomé said.
Moving forward, the company expects consolidated revenue of about $102B for the full year, in line with consensus, and consolidated adjusted operating margin of approximately 13.7%. Elsewhere, UPS is raising the amount of targeted share repurchases for 2022, taking the target to $3 billion for the year.
Despite the broadly positive results, reaffirmed guidance, and optimistic commentary, shares fell over 3% shortly after Tuesday’s market open. Lower volumes and reliance on price increases to push past earnings expectations appeared to temper market confidence in the report.
Read more on the details of the report.
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