Shares of UPS (NYSE:UPS) jumped Tuesday after the company reported better-than-expected revenue and profits over the busy holiday shopping season, reflecting a boom in online shopping due to the COVID-19 pandemic.
Revenue for the Atlanta-based logistics and delivery company jumped 21% to $24.9 billion during the fourth quarter ended Dec. 31, marking a record for UPS as it navigated unprecedented e-commerce sales over the holidays.
The company’s domestic package division saw a 17.4% increase in year-over-year revenue as its network filled to the brink with packages from online retailers, including Amazon (NASDAQ:AMZN)
UPS reported a loss of $3.26 billion during the quarter after disclosing $5.6 billion in charges.
Those costs included a $4.9-billion mark-to-market pension charge, a $114 million after-tax impairment charge and a $545-million impairment charge related to the company’s sale of UPS Freight.
Earnings per Share came in at $2.66 during the most recent quarter, compared with the $2.14 expected by experts. Revenue proved to be $2.66 per share, compared to the expected $2.14.
UPS did not provide an outlook on its future earnings due to ongoing uncertainty from the pandemic.
Said CEO Carol Tome, "Our financial performance in the fourth quarter exceeded our expectations, and I thank all UPSers for their extraordinary efforts to deliver industry-leading service through the holidays."
The results come off of a record-breaking shipping season fueled by the pandemic. Shoppers were tempted with holiday sales as early as October to spread out the number of packages in the system at any one time.
UPS shares hiked $7.57, or 4.8%, to $163.83.
