Shares of United Parcel Service Inc. rallied 1.2% in premarket trading Tuesday, after the package delivery giant reported second-quarter profit and revenue that rose above expectations and boosted its stock buyback plan by about 50%. Net income rose to $2.85 billion, or $3.25 a share, from $2.68 billion, or $3.05 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $3.29 beat the FactSet consensus of $3.16. Revenue grew 5.7% to $24.77 billion, above the FactSet consensus of $24.65 billion, as U.S. Domestic Package revenue increased 7.3% to $15.46 billion to beat expectations of $15.25 billion. Among UPS’s other business segments, International Package revenue rose 5.3% to $5.07 billion to top the FactSet consensus of $5.03 billion, and Supply Chain Solutions revenue edged up 0.7% to $4.23 billion, to miss expectations of $4.40 billion. Total operating expenses increased 5.3% to $21.23 billion. For 2022, UPS affirmed its revenue outlook of “about” $102 billion, while raising its amount of targeted share repurchases to $3 billion from about $2 billion. The stock has gained 2.7% over the past three months through Monday, while the Dow Jones Transportation Average has lost 6.0% and the Dow Jones Industrial Average has eased 3.8%.
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