United Parcel shares gain the most in 9 months on Tuesday, quarterly revenue exceeds market expectations as e-commerce delivery boom continues

United Parcel Service Inc’s (UPS) quarterly revenue, reported on Tuesday, surged past Wall Street estimates, as the package delivery company experienced a boom in online purchases amid the coronavirus pandemic.

UPS’ total revenue went up 27% year-on-year to $22.9 billion during the latest fiscal quarter, while outstripping a consensus of analyst estimates pointing to revenue of $20.49 billion.

Revenue at United Parcel’s domestic unit went up 22.3% year-on-year, propelled by growth from small- and medium-sized businesses.

Meanwhile, quarterly earnings, which exclude special items, were reported at $2.77 per share.

E-commerce deliveries for UPS and rivals have surged considerably during the COVID-19 pandemic as consumers staying at home have been ordering a wide range of items mostly online.

United Parcel shares closed higher for the fifth time in the past ten trading sessions in New York on Tuesday. It has also been the sharpest single-session gain since July 30th 2020. The stock went up 10.42% ($18.32) to $194.13, after touching an intraday high at $197.20 and also a fresh all-time high.

Shares of United Parcel Service Inc have risen 15.28% so far in 2021 compared with an 11.47% gain for the benchmark index, S&P 500 (SPX).

In 2020, United Parcel’s stock went up 43.86%, thus, it again outperformed the S&P 500, which registered a 16.26% gain.