UPS Tops Q2 Estimates as Restructuring Charges Weigh on Profit

United Parcel Service reported second-quarter results Tuesday that beat Wall Street expectations, with adjusted earnings of $1.76 per share against analyst estimates of about $1.65. Revenue came in at $22.83 billion, well ahead of the roughly $21.75 billion consensus.

GAAP net income fell to $604 million, or 71 cents per share, from $1.28 billion a year earlier. The decline was driven by $891 million in after-tax transformation charges, primarily employee separation costs tied to the company's Driver Choice Program as UPS continues its network reconfiguration.

For the full year, UPS guided to earnings of $7.22 per share on revenue of about $91.2 billion. Shares were in focus as investors weighed the operational beat against the cost of the ongoing restructuring.