UPS tops Q1 profit forecasts but misses on revenue
By Benjamin Chiou
Date: Tuesday 23 Apr 2024
(Sharecast News) - American transport and logistics giant United Parcel Service saw shares rise on Tuesday after quarterly profits beat analysts' forecasts, even though revenues fell more than expected.
Adjusted diluted earnings per share came in at $1.43 for the first quarter, down 35% on the year before, but well ahead of the $1.28 expected by the market. Consolidated operating profit fell 36.5% to $1.6bn.
Meanwhile, revenues fell 5.3% year-on-year to $21.7bn, missing the $21.8bn consensus estimate, with both domestic and international packages top lines underwhelming.
Package revenues in the US - its biggest market - fell 5% to $14.23bn after a 3.2% fall in average daily volumes and a 0.3% decline in the average revenue per piece.
Overseas revenues were down 6.3% at $4.26bn, though a 5.8% drop in volumes was met with a 2% increase in average revenue per piece.
In the supply chain division, however, sales fell 5.3% to $3.22bn but came in ahead of the $3.19bn estimate.
"I want to thank all UPSers for their hard work and efforts," said Carol Tomé, UPS chief executive officer. "Our financial performance in the first quarter was in line with our expectations, and average daily volume in the US showed improvement through the quarter. Looking ahead, we expect to return to volume and revenue growth."
UPS maintained its full-year outlook, guiding to group revenues of between $92bn and $94.5bn.
The stock was up 1.7% at $147.80 by 1153 in New York.
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