(Reuters) -Logistics giant United Parcel Service Inc forecast full-year revenue above market expectations on Tuesday, driven by higher shipping rates and demand from more profitable e-commerce customers.
Delivery volumes for UPS and rival FedEx Corp skyrocketed during the COVID-19 pandemic on heavy online shopping, with U.S. retailers reporting a better-than-expected $886.7 billion in sales during the crucial holiday season.
UPS, the world’s largest delivery company, said it expects revenue of about $102 billion in 2022, beating Wall Street estimates of $100 billion, according to Refinitiv-IBES.
Shares of the Atlanta-based company rose 5.6% in premarket trading.
Total revenue in the fourth quarter came in at a record $27.77 billion, beating the average estimate of $27.06 billion.
Fourth-quarter adjusted net income rose to a record $3.15 billion, or $3.59 per share, from $2.33 billion, or $2.66 per share, a year earlier.
UPS also said it expects to deliver its 2023 consolidated revenue and operating margin targets a year early.
(Reporting by Siddharth Cavale in Bengaluru; Editing by Ramakrishnan M.)
