In the premarket trading session, United Parcel Service Inc. (UPS) stock surged by 7.79% to the price of $189.51 at the time of this writing. UPS stock closed the previous session with a loss of -1.76% at $175.81. The stock volume traded today 3.97 million shares. While the average 3 months volume has been 3.36 million. In the past year-up-to-date UPS stock jumped by 75.49%. In the past week, the shares slumped by -1.26%. For the past 6 months the UPS shares went up by 1.63%. United Parcel Services Ltd. is currently valued in the market at $151.61 billion and has 870.00 million outstanding shares.
UPS stock’s operational background
United Parcel Service Inc. is a letter and parcel delivery company which specifically focuses on the transportation, deliver of the package, financial services, and logistics. The company operates in the international market, domestic US market. Furthermore, the company also provides supply chain & freight distribution.
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The company provides definite, time-bound day and night delivery in Europe, Canada, Latin America, Asia Pacific, Africa, Indian-subcontinent and the Middle East. Domestically, United Parcel Service Inc. provides delivery through air and ground services for letters, documents, package, and palletized freight. The company’s supply chain segment provides freight forwarding services transported international air and ocean as well as distribution, post-sales, custom brokerage and consulting services. The supply chain segment also works on the truckload services and truckload brokerage services.
Announcement of financial results for the first quarter 2021
United Parcel Services Ltd, has announced the release of its first quarter 2021 financial results. The results report profit earnings that beat the consensus and forecast. The Atlanta based UPS earned consolidated revenue of $22.9 billion and folded over a 27% increase compared to the first quarter of 2020.
The company mainly contributes its success to the recovery of overall economy as the news of vaccination has allowed countries to loosen some of its pandemic restrictions over business activities.
United Parcel Services Ltd. reported the consolidated profit from operations totals to $2.8 billion for Q1 2021 which is up by 158% compared to the prior year’s same period and on an adjusted basis is up by 164%. The diluted earnings per share went up by 393% to $5.47 compared to the same period in 2020.
Outlook and guidance update for UPS stock
However the company has not given the guidance for the earnings per share because even though pandemic restrictions have been eased down and business is resuming- the threat of new variants of Corona are emerging and uncertainty of economic conditions still prevail.
UPS stock has however reaffirmed its full-year capital allocation plans. The plans include the expectation of sales of UPS freight to close in the second quarter. Around $4.0 billion capital-based expenditures are expected to occur. UPS will repay a total of $2.5 billion in loans and debts in the first quarter of 2021. Around 23.5% is the expected tax rate of the remainder of the year. Repurchasing of shares is not in the plans of the UPS.