Why UPS Surged Nearly 20% in April
Shares in package delivery giant UPS (NYSE: UPS) rose a whopping 19.9% in April, according to data provided by S&P Global Market Intelligence. Most of the move occurred after a bumper set of first-quarter earnings. UPS managed to increase revenue by 27% year over year and operating profit by a remarkable 158%. Not only were the numbers excellent, but UPS demonstrated real progress on its overarching goals.
For example, the overall adjusted profit margin expanded to 12.9% from 6.2% in the same period last year, with U.S. domestic adjusted profit margin expanding to 10.4% from 3.5% in the first quarter of 2020. The impressive margin performance is a demonstration that UPS can increase profit margin even when it's making relatively more business-to-consumer (B2C) deliveries -- a key aim for the company.
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Source Fool.com
