United Parcel Service (NYSE: UPS) reported quarterly earnings and revenue that beat analysts' expectations on Thursday.
Earnings per Share registered at $1.67 vs. the expected $1.66, on revenue of $18.83 billion, compared to the expected. $18.19 billion.
In peak "cyber-periods," the company said shipments outpaced its network capacity, leading to $125 million in additional operating costs.
Still, UPS announced a record 762 million deliveries during the peak season. Packages delivered for the full quarter increased 5.7% over the year-ago period, to 1.5 billion deliveries.
The company adjusted its guidance for 2018, announcing expected earnings between $7.03 and $7.37 per share for the full year.
CEO David Abney said the recently passed tax overhaul law will set UPS up for success in 2018 and beyond.
"We expect to unlock significant resources, which will be available for accelerated investments in our network and create additional opportunities for our people," Abney said.
The disclosure, which follows a 2017 holiday season that smashed online shopping records, will shed light on how the shipping giant is faring amid the widespread economic shift away from brick-and-mortar retail and toward online delivery.
Rival FedEx (NYSE: FDX) last week said it will be giving out wage increases and bonuses, and will make a voluntary $1.5-billion contribution to the company's pension plan, citing the recent tax law.
UPS shares have appreciated more than 20% year over year. The shares moved into mid-morning Thursday way down, handing $8.00, or 6.3%, to $119.32.
