08:41 AM EDT, 10/24/2024 (MT Newswires) -- United Parcel Service's ( UPS ) third-quarter results increased year-on-year and topped market estimates, although the package delivery company lowered its full-year revenue outlook after selling its Coyote Logistics freight brokerage business.

Adjusted earnings rose to $1.76 a share for the September quarter, up from $1.57 the year before, surpassing the Capital IQ-polled consensus of $1.62. Revenue rose 5.6% to $22.25 billion, ahead of the Street's view for $22.13 billion. It was the first time UPS beat analysts' views on revenue since the June quarter of 2022, according to CapIQ data. The stock spiked 8% premarket.

"After a challenging 18-month period, our company returned to revenue and profit growth," Chief Executive Carol Tome said in a statement. "Peak season is nearly upon us, and we are ready to deliver another successful holiday season and continue the progress we demonstrated in the third quarter."

Revenue in the US domestic segment advanced to $14.45 billion from $13.66 billion in the prior-year quarter, amid a 6.5% gain in average daily volume. International revenue inclined 3.4% to $4.41 billion boosted by a 2.5% increase in revenue per piece. Supply chain solutions logged revenue growth of 8% to $3.38 billion.

The adjusted operating margin came in at 8.9% versus 7.7% a year earlier. Total operating expenses widened to $20.26 billion from $19.72 billion on an annual basis, UPS said.

For full-year 2024, UPS sees revenue of $91.1 billion, down from its previous guidance of $93 billion. The Street is looking for $91.87 billion. The revised outlook reflects the company's third-quarter results and the impact of the sale of Coyote Logistics, it said.

In June, UPS agreed to offload Coyote Logistics to transportation services company RXO (RXO) for $1.03 billion, as part of its efforts to streamline operations and focus on its core business. The transaction was completed in September.

The group expects its adjusted operating margin for the ongoing year to be at around 9.6%, compared with its prior projection of about 9.4%.

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