UPS beats earnings expectations, raises full-year guidance
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- UPS posted Q2 adjusted EPS of $1.76 vs. $1.66 expected and revenue of $22.8 billion vs. $21.81 billion expected; net income nonetheless fell to $604 million ($0.71/share) from $1.28 billion ($1.51/share) a year earlier
- UPS raised full-year guidance to consolidated revenue of $91.2 billion and adjusted diluted EPS of roughly $7.22, with CEO Carol Tomé calling it the "fourth straight quarter of delivering results that exceeded our expectations"
- UPS shares dropped 5% in premarket trading despite the earnings beat and raised outlook
- UPS completed its glide-down with Amazon, eliminating roughly 2 million pieces per day of "lower quality Amazon volume" and removing about $4.5 billion in related expenses so far
- UPS expects Q3 domestic average daily volume to fall in the mid-single digits with domestic revenue flat year-over-year, citing seasonal decline and the Amazon wind-down
- UPS reported healthcare logistics revenue above $3 billion for a second consecutive quarter, alongside 6% domestic revenue growth, 12.5% international growth, and 7.8% supply chain solutions growth
- CEO Tomé flagged momentum on the China-to-U.S. lane, which returned to year-over-year growth in May, and called UPS's RFID and AI tracking investments "the most significant package visibility advancement in a decade"
Why it matters: The Amazon wind-down removes low-margin volume on purpose, but it also drags near-term counts — that's why shares fell 5% premarket even after a clean beat and a raise. Healthcare (above $3 billion for two straight quarters) plus 12.5% international growth are the offsets management is leaning on to make the math work.
