After announcing its Q1 results before market opening on Tuesday, shares of the package delivery company United Parcel Service (NYSE:UPS) have jumped 10.4%. First quarter profits and revenues considerably exceeded expectations, propelling UPS to record highs.
Total revenues were up 27% year on year, reaching $22.9 billion, while net income grew 158% year on year, amounting to $2.8 billion. The diluted EPS rose by an astonishing 393% year on year to $5.47.
UPS CEO, Carol Tomé, stated that “during the quarter, we continued to execute our strategy under the better-not-bigger framework, which enabled us to win the best opportunities in the market and drove record financial results.”
The delivery giant benefits from the continued pandemic measures that have accelerated the shift toward e-commerce and thus made parcel logistics an increasingly important industry for the overall economy. Nevertheless, UPS didn’t provide guidance due to the uncertain outlook.
Despite increased vaccinations, UPS is confident that demand for their services will increase throughout the year propelled by strong demand due to savings and stimulus.