By Dhirendra Tripathic
Investing.com – UPS (NYSE:UPS) stock was trading 2.4% weaker in Tuesday’s premarket as an overall strong quarter was somewhat spoiled by disappointing earnings in the US market.
US sales grew just 10%, while total sales grew 14% to $23.42 billion, thanks to a 30% growth in international parcel sales.
This was above the estimated $23.19 billion and was led by European operations, where Covid-19-related factors again dominated.
Delivery companies and logistics providers have brought in huge revenues during the pandemic as remote working and online shopping have fueled a huge surge 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
One consolation to the company was that CEO Carol Tomé’s “better, not bigger framework” aimed at higher margins seemed to be working. Unit sales in the US increased by more than 13%.
For 2021, the company expects a consolidated operating margin of just under 13%.