UPS jumps most since 2008 as expansion shows early success - SF Gate
United Parcel Service rose the most in more than 10 years after beating its own profit guidance, an early sign that a three-year, $20 billion expansion plan is paying off by keeping rising costs in check.
Chief Executive Officer David Abney had promised investors they'd begin to see benefits later this year from his strategy to reduce residential delivery costs and increase business-to-business packages, which are more profitable. Shares tanked when he unveiled the plan in early 2018.
Investors got a confidence boost Wednesday after UPS reported adjusted earnings of $1.96 a share in the second quarter, better than the company's prediction in April that profit would be "relatively flat" with the $1.94 it reported a year earlier. Analysts had expected $1.93.
United Parcel Service rose the most in more than 10 years after beating its own profit guidance, an early sign that a three-year, $20 billion expansion plan is paying off by keeping rising costs in check.
Chief Executive Officer David Abney had promised investors they'd begin to see benefits later this year from his strategy to reduce residential delivery costs and increase business-to-business packages, which are more profitable. Shares tanked when he unveiled the plan in early 2018.
Investors got a confidence boost Wednesday after UPS reported adjusted earnings of $1.96 a share in the second quarter, better than the company's prediction in April that profit would be "relatively flat" with the $1.94 it reported a year earlier. Analysts had expected $1.93.
