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Why Is UPS (UPS) Down 1.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for United Parcel Service (UPS - Free Report) . Shares have lost about 1.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is UPS due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat at UPS in Q1
United Parcel Service' s first-quarter 2024 earnings per share of $1.43 beat the Zacks Consensus Estimate of $1.33 but declined 35% year over year. Revenues of $21,706 million fell short of the Zacks Consensus Estimate of $21,960.6 million and decreased 5.3% year over year.
UPS generated $3.31 billion of net cash from operating activities in the first quarter. Capital expenditures were $1.03 billion. Free cash flow was $2.28 billion
U.S. Domestic Package revenues decreased 5% year over year to $14.23 billion, caused by a3.2% decrease in average daily volume. The actual figure was lower than our estimate of $14,595 million. Segmental operating profit (adjusted) plunged 43.6% year over year to $839 million. The adjusted operating margin for the segment was 5.9%.
Revenues at the International Package division summed $4.26 billion, down 6.3% year over year. The downfall was due to a 5.8% decrease in average daily volume. Segmental operating profit (adjusted) totaled $682 million, down 15.4% year over year. The adjusted operating margin for the segment was 16%.
Supply Chain Solutions revenues of $3.22 billion fell 5.3% year over year due to market rate declines in forwarding. Operating profit (on an adjusted basis) tumbled 12.4% to $226 million. The adjusted operating margin for the segment was 7%.
2024 Outlook
For 2024, UPS continues to anticipate revenues in the range of $92-$94.5 billion and consolidated adjusted operating margin to lie between 10% and 10.6%. Capital expenditures are still anticipated to be around $4.5 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, UPS has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, UPS has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is UPS (UPS) Down 1.9% Since Last Earnings Report?
It has been about a month since the last earnings report for United Parcel Service (UPS - Free Report) . Shares have lost about 1.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is UPS due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Earnings Beat at UPS in Q1
United Parcel Service' s first-quarter 2024 earnings per share of $1.43 beat the Zacks Consensus Estimate of $1.33 but declined 35% year over year. Revenues of $21,706 million fell short of the Zacks Consensus Estimate of $21,960.6 million and decreased 5.3% year over year.
UPS generated $3.31 billion of net cash from operating activities in the first quarter. Capital expenditures were $1.03 billion. Free cash flow was $2.28 billion
U.S. Domestic Package revenues decreased 5% year over year to $14.23 billion, caused by a3.2% decrease in average daily volume. The actual figure was lower than our estimate of $14,595 million. Segmental operating profit (adjusted) plunged 43.6% year over year to $839 million. The adjusted operating margin for the segment was 5.9%.
Revenues at the International Package division summed $4.26 billion, down 6.3% year over year. The downfall was due to a 5.8% decrease in average daily volume. Segmental operating profit (adjusted) totaled $682 million, down 15.4% year over year. The adjusted operating margin for the segment was 16%.
Supply Chain Solutions revenues of $3.22 billion fell 5.3% year over year due to market rate declines in forwarding. Operating profit (on an adjusted basis) tumbled 12.4% to $226 million. The adjusted operating margin for the segment was 7%.
2024 Outlook
For 2024, UPS continues to anticipate revenues in the range of $92-$94.5 billion and consolidated adjusted operating margin to lie between 10% and 10.6%. Capital expenditures are still anticipated to be around $4.5 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, UPS has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, UPS has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.