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Adjusted EPS improved by 7.5% Y/Y to $3.29, beating the consensus of $3.16.
Consolidated operating profit was $3.5 billion and up 9.3% Y/Y on an adjusted basis.
U.S. Domestic Segment revenue increased by 7.3% Y/Y to $15.46 billion, driven by an 11.9% increase in revenue per piece. The adjusted operating margin was 12%, up by 40 bps.
International Segment revenue increased by 5.3% Y/Y to $5.07 billion, driven by a 14.8% increase in revenue per piece. The adjusted operating margin was 23.7%, down by 97 bps.
Supply Chain Solutions Segment revenue increased by 0.7% Y/Y to $4.23 billion, led by Forwarding and healthcare business, and the adjusted operating margin expanded by 250 bps to 12.2%.
UPS generated cash from operating activities year-to-date of $8.29 billion and Free cash flow of $6.89 billion. The adjusted return on invested capital was 32%.
FY22 Outlook reaffirmed: UPS expects consolidated revenue of about $102 billion vs. a consensus of $102.11 billion. It sees an adjusted operating margin of ~13.7% and an adjusted return on invested capital above 30%.
UPS plans to raise the targeted share repurchases for 2022, taking the target to $3 billion for the year.
Price Action: UPS shares are trading lower by 3.81% at $180.74 during the market session on Tuesday.
