UPS Tops Third-Quarter Forecasts and Lifts Full-Year Outlook for Second Time

United Parcel Service reported third-quarter results on Tuesday that came in ahead of Wall Street expectations, and the company raised its full-year guidance for the second consecutive quarter. Shares edged higher in premarket trading.

The shipping giant now expects consolidated revenue of roughly $92.6 billion for the full year, up from its earlier projection of $91.2 billion. It also forecast fourth-quarter revenue of $25.7 billion. UPS had already lifted its outlook during the previous quarter.

On an adjusted basis, UPS earned $1.69 per share, compared with the $1.63 that analysts surveyed by LSEG had predicted. Revenue reached $22.9 billion, above the consensus estimate of $22.29 billion.

For the quarter ended Sept. 30, the company posted net income of $1.16 billion, or $1.37 per share. That was a modest decline from $1.31 billion, or $1.55 per share, in the same period a year earlier. The adjusted figure of $1.69 per share excludes one-time expenses.

Each of the company's main segments grew. Revenue in the domestic business rose 4.5%, while the international segment gained 7.1%. The supply chain solutions unit posted the strongest performance, with revenue up 18.2%. UPS attributed that increase mainly to growth in forwarding and logistics, including work in healthcare.

The domestic results compare with earlier guidance from the company. UPS had said it expected third-quarter domestic revenue to be flat and average daily volume to decline, citing seasonal softness and the glide down of its business with Amazon.

Chief Executive Carol Tomé struck an upbeat tone in a statement. "As momentum builds, we are entering the holiday shipping season from a position of strength, with the most automated and efficient network in our history," she said.

The results arrive as UPS continues a turnaround under Tomé's leadership. The company has been working to build a leaner business model and to use automation to position itself for future growth.