What Happened?
Shares of parcel delivery company UPS (NYSE:UPS) jumped 10.6% in the pre-market session after the company reported third-quarter results that beat analysts' EPS expectations, while revenue came in roughly in line. Impressively, the company recorded sales growth for the first time since 2022. Moving on, guidance was mixed as full-year revenue guidance was lowered, while adjusted operating margin guidance was lifted. Zooming out, we think this was a decent quarter featuring some areas of strength but also some blemishes. After the initial pop the shares cooled down to $137.81, up 4.9% from previous close.
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What The Market Is Telling Us
United Parcel Service’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. Moves this big are rare for United Parcel Service and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock dropped 13.5% on the news that the company reported second-quarter earnings results. Its EPS missed, and its revenue fell short of Wall Street's estimates. The outlook wasn't encouraging, as the company slightly lowered its full-year revenue guidance. It also lowered full year operating margin guidance by a more significant amount. Overall, this was a mediocre quarter for United Parcel Service.
United Parcel Service is down 13% since the beginning of the year, and at $137.81 per share, it is trading 15.4% below its 52-week high of $162.94 from December 2023. Investors who bought $1,000 worth of United Parcel Service’s shares 5 years ago would now be looking at an investment worth $1,209.
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