United Parcel Service Inc. reported better-than-expected quarterly profit on Tuesday as the parcel delivery company raised prices to take advantage of a booming e-commerce sector.
Since taking the helm of UPS in June 2020, CEO Carol Tome has pushed the company to adopt a strategy that prioritizes profitable delivery over volume.
UPS has also sharpened its focus on the highest revenue and profit generating segments of the industry, including healthcare and small and medium-sized businesses (SMBs).
“The agility of our network and the continued execution of our strategy have provided us with another quarter of strong financial results, putting us on track to achieve our consolidated financial goals for 2022,” Tome said in a statement.
Shares of the Atlanta-based company fell 3.59% to 182.84 after rising a similar percentage in pre-market trading.
UPS posted first-quarter adjusted profit of $3.05 per share, versus analysts’ average expectation of $2.88 per share, according to Refinitiv data.
The messaging company reaffirmed its full-year revenue forecast of about $102 billion. It expects a consolidated adjusted operating margin of around 13.7% and an adjusted return on invested capital in excess of 30%.
UPS posted quarterly revenue of $24.4 billion, beating analyst expectations of $23.78 billion, according to IBES data from Refinitiv.
Revenue from its domestic segment increased 7.7% to $15.1 billion.
UPS said it planned to double its share buybacks in 2022, bringing the target to $2 billion for the year.