Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

UPS jumps 6% on blowout quarter

chart_ws_stock_unitedparcelserviceinc.top.png By Ben Rooney, staff reporter


NEW YORK (CNNMoney.com) -- Shares of UPS surged Thursday after the world's largest delivery company reported sales and earnings that beat analysts' expectations and raised its outlook for the rest of the year.

UPS (UPS, Fortune 500) was up $3.60 a share, or 6%, to $63.61 in afternoon trading.

The rally came after UPS said second-quarter earnings surged 90% on strong sales in the United States and abroad. Big Brown also said it expects earnings to grow this year despite the "slow pace of the U.S. recovery."

Investors cheered the results because UPS, which delivers consumer products around the world, is seen as a proxy for overall economic activity. Stocks were up more than 2% with about two hours left in the session.

"The market is adjusting to the idea that companies can still perform in a slow growth environment," said James Ragan, an analyst who covers UPS at Crowell, Weedon & Co.

While the results benefited from an easy comparison to last year, Ragan said investors were encouraged to see that sales at UPS continued to grow despite signs the economic recovery has hit a soft patch.

"I think people are feeling today that there's still room for revenue growth," he said.

UPS said revenue in the quarter jumped nearly 13% to $12.2 billion.

The Atlanta-based company said it earned $845 million, or 84 cents a share, in the second quarter. That's up from $445 million, or 44 cents a share, a year earlier.

Analysts were expecting earnings of 77 cents per share, according to consensus estimates from Thomson Financial.

Looking ahead, UPS said it expects 2010 earnings to be in a range of $3.35 to $3.45 a share. Analysts had been expecting full-year earnings of $3.27 a share. To top of page

Index Last Change % Change
Dow 21,562.28 -49.50 -0.23%
Nasdaq 6,384.91 -5.09 -0.08%
S&P 500 2,470.56 -2.89 -0.12%
Treasuries 2.23 -0.03 -1.50%
Data as of 12:57pm ET
Company Price Change % Change
General Electric Co 25.93 -0.76 -2.84%
Bank of America Corp... 23.82 -0.12 -0.48%
Advanced Micro Devic... 14.04 0.23 1.70%
Microsoft Corp 73.62 -0.60 -0.81%
Ford Motor Co 11.52 -0.17 -1.50%
Data as of 12:42pm ET
Sponsors

Sections

The Congressional Budget Office narrows its projection for when Treasury will run short on money if Congress doesn't raise or suspend the country's debt ceiling. More

Lyft said it will develop the hardware and software to power its own self-driving vehicles, a dramatic departure in strategy. More

The newly revamped Citi Prestige card offers 75,000 sign up points and a fourth night free at hotels. But you have to spend $7,500 in the first three months to get the offer. More