UPS Silences the Doubters
It's fair to say that investors approached UPS (NYSE: UPS) third-quarter earnings with a sense of trepidation. After all, its main rival FedEx (NYSE: FDX) gave a horrible earnings report in September, taking a $450 million hit due to constrained labor markets caused by the lingering impact of the COVID-19 pandemic. What would UPS report?
The answer to this question is that a super set of third-quarter earnings served to silence the doubters. And I know because I was one of them.
The critical number to follow with UPS is its U.S. domestic package segment margin. Not only is the segment the most significant earnings generator for the company, but the growth in its margin is the key to its 2023 targets laid out on its investor day presentation in June.
Source Fool.com
