This is why Royal Mail’s share price has soared to 2.5-year highs!

first_img Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. This is why Royal Mail’s share price has soared to 2.5-year highs! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Royston Wild | Thursday, 11th February, 2021 | More on: RMG Investor appetite across UK share markets remains quite weak as fears over the public health emergency roll on. The FTSE 100 remains flattish around the 6,500 point marker while the FTSE 250’s dipped back below 21,000 points. But Britain’s oldest courier, Royal Mail (LSE: RMG), is having no such trouble attracting buyers in Thursday business.This FTSE 250 stock has roared 5% higher thanks to the release of some upbeat third-quarter financials. It keeps the UK share’s strong momentum going (Royal Mail has risen 155% in value over the past 12 months). And an intra-day high of 473p per share earlier was the company’s most expensive price since September 2018.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Royal Mail ups its revenue forecastsIn its bubbly statement, Royal Mail said that “an unprecedented third quarter” has prompted it to revise its full-year forecasts (to March 2021).Royal Mail said it anticipates revenues for the year to be “significantly beyond” the forecast £380m-£580m it suggested back in November. As a result, it now expects adjusted operating profit to be “well in excess” of £500m, it added.The courier said that stronger-than-expected trading in the third quarter and which had continued into January had prompted the revision. It added that its robust performance in that time had been “primarily driven by the reintroduction of nationwide Covid-19 restrictions, which was not built into our scenario from November.” It also said better letter volumes had boosted business in recent months.Group revenues rose 20% year on year in the December quarter. For the nine months to December turnover was up 13.5% at a shade over £9.31bn.E-commerce turbocharges parcel volumesThe 500-year-old company described the December quarter as its busiest ever in terms of British parcels traffic. Royal Mail shifted a mammoth 496m packages in that time, up 30% year on year. This drove revenues from its domestic parcels operations 43.3% higher.The UK share also enjoyed a strong increase in parcels volumes at its overseas GLS division in Q3. Traffic here surged 27% because of similar Covid-19 lockdowns in some of its territories. The unit shifted a whopping 228m packages in that time. And this propelled GLS’s revenue 29.4% higher year on year.Meanwhile Royal Mail saw volumes at its UK letters division fall 14% in the quarter. Revenue here dropped 8.5% on the year as a result. By comparison, letters volumes and turnover dropped 28% and 20.5% in the first six months of fiscal 2021.Non-executive chair Keith Williams said the strong third-quarter performance was “driven by online shopping and the peak Christmas period.” He noted that “our busiest day during the quarter saw 32% more parcels delivered than our busiest day during the first national lockdown in 2020.” Royal Mail shifted a staggering 11.7m parcels on that third-quarter day. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img Enter Your Email Address Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Royston Wildlast_img

Leave a Reply

Your email address will not be published. Required fields are marked *