United Parcel Service Inc
UPS reported consolidated revenue growth of 5.6% year-over-year to $22.2 billion, beating the consensus of $22.14 billion.
Adjusted EPS was $1.76, up 12.1% YoY, above the consensus of $1.63.
GAAP results for the quarter reflect a net after-tax benefit of $36 million, or $0.04 per share, driven by a $152 million gain from the Coyote Logistics divestiture, offset by $116 million in transformation costs.
Consolidated operating profit rose 47.8% YoY to $1.983 billion and +22.8% on an adjusted basis. Adjusted operating margin stood at 8.9%, up from 7.7% a year ago.
U.S. Domestic Segment revenue increased 5.8% to $14.45 billion, reflecting a 6.5% increase in average daily volume. The adjusted operating margin stood at 6.7%.
International Segment revenue grew 3.4% to $4.41 billion, reflecting a 2.5% increase in revenue per piece. The adjusted operating margin was 18%.
Supply Chain Solutions Segment revenue increased by 8% to $3.384 billion, reflecting growth in air and ocean forwarding and the continued onboarding of USPS air cargo. The adjusted operating margin was 6.4%.
UPS' operating cash flow for nine months ended September 30, 2024, totaled $6.807 billion, and free cash flow was $4.038 billion.
2024 Outlook, updated: UPS now expects revenue of ~ $91.1 billion (prior expectation ~$93 billion) versus the $91.851 billion consensus and sees an adjusted operating margin of 9.6% (prior view 9.4%)
UPS continues to expect 2024 capital expenditures of about $4 billion. The company expects dividend payments of $5.4 billion, subject to Board approval.
Price Action: UPS shares are trading higher by 8.43% at $142.49 premarket at the last check Thursday.
