Earnings: UPS hikes prices to offset inflation


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Earnings: UPS hikes prices to offset inflation - Yahoo

Yahoo Finance Live's Julie Hyman and Brian Sozzi discuss first quarter earnings for UPS.

Video Transcript​

JULIE HYMAN: Let's go quickly to our next company, which is also battling higher levels of inflation, but it's raising costs. It's raising prices, I should say, and that's United Parcel Service, UPS, raising prices. And that seems to be helping the company. Efficiency gains as well helping to offset some of those higher costs. Actually, the shares were higher earlier, weren't they? Was I imagining that, Sozzi?

BRIAN SOZZI: They were a little higher. And I'm surprised that they're still not, Julie. Overall, a good quarter from a UPS, despite these inflationary pressures they're seeing. Certainly a better quarter than what we saw from 3M, and of course, GE. But margins throughout their business actually expanded in the supply chain segment. That is a good thing.

Even international business margins didn't fall that much. But importantly, margins in the US domestic segment, that is the key driver of UPS's financials. And of course, over time, its stock price, those margins were off. The company largely reaffirming its outlook. All good things to see.