UPDATE 2-UPS delivers profit, revenue beat on e-commerce demand

·1 min read

(Adds share movement, details on U.S. operations, compares results with estimates) 

  Oct 26 (Reuters) - United Parcel Service Inc reported better-than-expected quarterly earnings and revenue on Tuesday, bolstered by strong e-commerce demand that has allowed the delivery firm to raise shipping prices and cherry-pick more profitable customers. 

  The company also raised its full-year adjusted operating margin target to about 13% from about 12.7%, ahead of the holiday season. 

  Shares of Atlanta-based UPS were up about 2% before the opening bell. 

  UPS and rival FedEx Corp are delivering record number of e-commerce packages amid labor shortages since COVID-19 shifted shopping online. 

  To beef up its delivery operations, UPS outlined plans last month to buy Roadie, a crowd-sourced, same-day delivery company whose major clients include home improvement chain Home Depot . 

  Revenue from UPS' U.S. operations, its biggest segment, rose 7.4% to $14.21 billion. 

  The company's third-quarter operating profit rose to about $2.9 billion, or $2.65 per share, in the third quarter ended Sept. 30, from $2.36 billion, or $2.24 per share, a year earlier. 

  On an adjusted basis, operating profit was $2.71 per share, above the average analyst estimate of $2.55, according to Refinitiv I/B/E/S data. 

  Revenue rose 9.2% to $23.18 billion, beating expectations of $22.56 billion. (Reporting by Lisa Baertlein in Los Angeles and Abhijith Ganapavaram in Bengaluru; Editing by Maju Samuel) 

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