Summary by Futu AI
UPS reported strong Q3 2024 results with revenue increasing 5.6% to $22.2 billion and operating profit rising 47.8% to $1.99 billion. The company saw significant volume growth with average daily package volume up 5.4% to 21.5 million packages, driven by gains from Enterprise and SMB customers. Revenue per piece declined 1.7% to $13.58 due to customer and product mix changes.The U.S. Domestic segment led growth with revenue up 5.8% to $14.5 billion and operating profit increasing 57.3% to $898 million. International Package revenue rose 3.4% to $4.4 billion with operating profit up 26.7% to $798 million. Supply Chain Solutions revenue grew 8% to $3.4 billion, including a $156 million gain from the divestiture of Coyote truckload brokerage business.Looking ahead, UPS expects continued growth in consolidated revenue and operating profit in Q4 driven by anticipated volume growth and focus on revenue quality. The company completed $500 million in share repurchases during Q3 and maintains its full-year 2024 capital expenditure target of approximately $4.0 billion, with 46% allocated to growth initiatives and network enhancement projects.
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