UPS Shares Rising on Earnings and Revenue, While Domestic Segment Revenue Is Shy

Shares of United Parcel Service Inc. UPS,
rose 0.5% in premarket trading Tuesday after the parcel delivery giant reported second-quarter profits and revenues that beat expectations even as US home affairs fell short of revenue forecasts. Net income rose to $2.68 billion, or $3.05 per share, from $1.77 billion or $2.03 per share in the same period a year ago. Excluding one-time items, adjusted earnings per share came in at $3.06, beating the FactSet consensus of $2.81. Revenue rose 14.5% to $23.42 billion from $20.46 billion, above the FactSet consensus of $23.19 billion. US domestic segment revenue grew 10.2% to $14.40 billion, helped by a 13.4% increase in unit sales, but was below the FactSet consensus of $14.76 billion; International segment revenue grew 30.0% to $4.82 billion, exceeding expectations of $4.57 billion; and supply chain solutions revenue grew 14.3% to $4.21 billion to exceed expectations of $3.85 billion. The company confirmed its 2021 outlook for capital expenditures of approximately $4.0 billion. The stock is up 24.6% through Monday, while the Dow Jones Transportation Average DJT,
is up 18.1% and the Dow Jones Industrial Average DJIA,
won 14.8%.