United Parcel Service Inc.’s package deliveries fell in the first quarter, pressuring shares even as price increases helped the company post profit above expectations.
Adjusted earnings were $3.05 a share in the period, the Atlanta-based courier said in a statement Tuesday. Analysts had predicted $2.88. Revenue rose 6.4% to $24.4 billion.
“Our average daily volume fell short of our plan due to several external factors,” Chief Executive Officer Carol Tome said on a conference call with analysts. “But we remain focused on controlling what we can control.”
Shares of UPS fell 3.3% at 10:20 a.m. New York time.
The company raised prices and focused more on higher-paying small businesses during the period. Average package volume dropped 3.6% from a year earlier, though the company made up for that with a 9.4% gain in revenue per parcel. The pricing power helped UPS increase adjusted operating margin to 13.6% from 12.9% a year earlier.
UPS plans to double share repurchases this year to $2 billion, and the company reiterated a 2022 revenue goal of $102 billion. Adjusted operating margins are still seen at about 13.7%.