United Parcel Service Inc , the world's largest package delivery company, raised its outlook on Thursday on higher ground and export volume, sending shares up 3.5 percent in premarket trading.
UPS surpassed Wall Street's expectations for its second- quarter results, as profits soared 90 percent to $845 million, or 84 cents per share, compared with a profit of $445 million, or 44 cents per share, a year ago.
Analysts were expecting a profit of 77 cents per share, according to Thomson Reuters I/B/E/S.
They are capturing volume growth, particularly on the international side, said BB&T Capital Markets analyst Kevin Sterling. And they are pushing price increases across to their customers. They knocked the cover off the ball.
Atlanta-based UPS raised its guidance to a range of $3.35 to $3.45 per share from $3.05 to $3.30 per share citing expectations of continued momentum in its three segments: supply chain and fright, international and domestic.
Analysts were expecting $3.27 per share.
Revenue rose 13 percent to $12.2 billion.
Despite the anticipated slow pace of the U.S. recovery and a cautious outlook for Europe, we are confident in our ability to grow the business and improve profits, Chief Financial Officer Kurt Kuehn said in a statement.
Domestic package revenue rose 7 percent as ground volume rose 2 percent.
Substantial growth in our international segment continues to outpace the market, CEO Scott Davis said in the statement.
Export volume was up 15 percent, with volume out of Asia spiking 40 percent.
UPS's shares rose 3.5 percent to $62.10 in premarket trading.
(Reporting by Helen Chernikoff; Editing by Maureen Bavdek)