A United Parcel Service worker delivers packages on April 29, 2020 in New York City.
Stephanie Keith | fake pictures
United Parcel Service beat Wall Street estimates of quarterly earnings and revenues on Thursday as the COVID-19 pandemic caused an increase in home delivery and health care shipments.
Shares of the parcel delivery company rose nearly 12% in premarket trading.
The coronavirus outbreak has led to a boom in home deliveries of everything from food to furniture to electronics and exercise equipment, as shutdown measures keep people at home.
Demand for domestic residential deliveries increased in the quarter, increasing consumer shipments by 65.2%, the company said.
“Our results were better than we expected, driven in part by changes in demand that arose from the pandemic,” said UPS CEO Carol Tomé.
Average daily volumes in the United States increased 22.8% to 21.1 million packages per day, the company said, adding that it also saw strong outgoing demand from Asia.
Atlanta-based UPS said net income increased 4.7% to $ 1.77 billion in the quarter ended June 30. Excluding items, the company earned $ 2.13 per share, beating estimates of $ 1.07 per share.
Revenue increased 13.4% to $ 20.46 billion, exceeding estimates of $ 17.48 billion, according to IBES data from Refinitiv.
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