UPS

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target price of $149, raised $1, reflects a 15x multiple of projected ’25 EPS, in line with UPS’s historical forward average. We cut our ’24 EPS estimate by $0.14 to $8.22, but raise ’25’s by $0.07 to $9.96. Q1 EPS of $1.43, vs. $2.20, beat consensus by $0.08. In UPS’s U.S. Domestic segment, average daily volumes fell 3.2% Y/Y, and revenues fell 5.0%, indicative in our view of ongoing (albeit modest) pricing pressure. We see a similar situation in the International segment, where average daily volumes dropped 5.8% Y/Y and revenues fell 6.3%. UPS maintains its ’24 revenue guidance of a range of $92.0B-$94.5B, which would suggest revenue growth in ’24 of 1%-4%, likely with an acceleration in 2H ’24. We think cost efforts will […]

UPS Releases 1Q 2024 Earnings — Consolidated Revenues of $21.7B, Compared to $22.9B Last Year — Consolidated Operating Margin of 7.4%; Adjusted* Consolidated Operating Margin of 8.0% — Diluted EPS of $1.30; Adj. Diluted EPS of $1.43, Compared to $2.20 Last Year — Reaffirms Full-Year 2024 Financial Guidance ATLANTA–(BUSINESS WIRE)–April 23, 2024– UPS (NYSE:UPS) today announced first-quarter 2024 consolidated revenues of $21.7 billion, a 5.3% decrease from the first quarter of 2023. Consolidated operating profit was $1.6 billion, down 36.5% compared to the first quarter of 2023, and down 31.5% on an adjusted basis. Diluted earnings per share were $1.30 for the quarter; adjusted diluted earnings per share of $1.43 were 35.0% below the same period in 2023. For the first quarter of 2024, GAAP results include a total charge of $110 million, or $0.13 per diluted share, comprised of after-tax transformation and other charges of $75 million and a

The following is a summary of the United Parcel Service, Inc. (UPS) Q1 2024 Earnings Call Transcript: Financial Performance: United Parcel Service’s announced Q1 2024 revenue at $21.7 billion, marking a 5.3% decline due to a decrease in average daily volume. A significant drop of 31.5% was observed in the Operating profit, amounting to $1.7 billion, mainly due to higher labor costs from the first year of the Teamsters’ contract. In terms of volume, both US domestic and international segments have seen a decrease of 3.2% and 5.8% respectively, affected by the retail and manufacturing sectors. $1.3 billion has been issued to shareholders as dividends in Q1. Despite the performance, UPS retains its projected 2024 consolidated financial targets. Business Progress: UPS is reimagining its network by introducing changes like ‘Network of the Future’, becoming the primary air cargo provider for USPS. The company’s expansion plans include increasing UPS store locations

HSBC analyst Parash Jain maintains United Parcel Service (NYSE:UPS) with a Hold and lowers the price target from $155 to $150.

United Parcel Service’s (UPS) 2026 revenue outlook of $108 billion to $114 billion and operating margin above 13% is higher than BofA Securities’ forecast of $105 billion and 12%, the firm said in a note Wednesday. The investment firm said it anticipates its outlook to be subject to risk given that United Parcel missed its multi-year targets at its most recent analyst meetings. The company expects mid-single-digit revenue growth and revenue per package growth of 2.5%, BofA Securities added. “This appears to be an aggressive return-to-growth outlook, despite sustained weakness in the small package market,” BofA said. BofA maintained its neutral rating on the company’s stock and cut the price objective to $158 from $164.

United Parcel Service (UPS) outlined “significant” cost cuts that are expected to support a “multiyear margin improvement story,” UBS Securities said Wednesday in a report. The company provided a framework for productivity drivers and network rationalization at its Tuesday analyst meeting that are expected to result in $3 billion of cost savings through 2028, UBS said. “We believe the pullback in UPS stock provides an attractive opportunity,” the report said. UBS maintained its buy rating on the stock with a $175 price target.

United Parcel Service’s (UPS) latest three-year financial targets topped market expectations, though they likely “carry risk” as the company has previously missed its multiyear objectives, BofA Securities said Wednesday. The package delivery company outlined the targets Tuesday, including eyeing 2026 revenue of about $108 billion to $114 billion and adjusted operating margin above 13%. BofA said it was looking for $105 billion and 12%, respectively. The company’s outlook implies earnings of about $13.40 per share, roughly 20% above BofA’s estimate, the brokerage said. “UPS has missed its multiyear targets set at its last few analyst meetings, thus we expect its outlook to carry risk,” BofA analyst Ken Hoexter said in a note. The company’s revenue is expected to increase at a mid-single digit rate, which Hoexter said was above the industry growth rate of 2.6%, excluding Amazon.com (AMZN). “This appears to be an aggressive return-to-growth outlook, despite sustained weakness in

United Parcel Service (UPS) will likely set “better and bolder” three-year objectives, BofA Securities said in a note Tuesday, ahead of the company’s investor day. The company is hosting an investor day on Tuesday and is expected surpassing revenue and margin targets, but more details are awaited at the conference. UPS Chief Executive Carol Tome sees growth in small package market from 2024 and onwards, and a focus on premium markets and productivity. Among the targets is a revenue of $108 billion to $114 billion in 2026, a 6% to 8% compound annual growth rate, compared with BofA’s estimate of $105 billion in revenue. The company projects operating margin of 13% or higher, led by Domestic operations targeting 12% versus BofA’s estimate of 10%. “Quick math on mid-point revenues and margin targets could indicate an approximate $13.40 of EPS on UPS’ targets vs. our $11.10 2026 EPS estimate, a 20%

United Parcel Service said that there is excess parcel capacity of 12 million pieces a day in the U.S., of which 6 million are held by the Postal Service and the remaining by carriers including UPS. UPS estimates that overall, carriers delivered 84 million parcels a day at the end of 2023, lower than previously projected because consumers pulled back spending as inflation skyrocketed. However, UPS CEO Carol Tomé said this is not indicative of a price war. She added that UPS is no longer reducing its intake of Amazon parcels, as part of previous efforts to reduce its exposure to a single customer. Amazon makes up more than 11% of UPS’ revenue. “The glide-down is over,” she said.

United Parcel Service plans to devote a larger chunk of its revenue to capital spending through 2026 as margin pressures from the costs of its labor contract begin to subside, CFO Brian Newman tells WSJ. The delivery giant expects capital spending between 2024 and 2026 to comprise about 5.5% of total revenue, up from 4.9% the prior comparable period. UPS and union leaders last summer agreed to a new five-year pact, the costs of which were particularly substantial in the first year. The company is continuing to cut costs and boost efficiencies, for example by shedding 12,000 jobs and expanding use of RFID technology, Newman says.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $148, cut $6, reflects a 15x multiple of our revised 2025 EPS estimate, in line with UPS’s historical forward average. We cut our 2024 EPS estimate by $0.96 to $8.36 and 2025’s by $0.71 to $9.89. UPS held an Investor Day event today, outlining strategic and financial targets through 2026. UPS has guided for 2026 revenues in the range of $108B-$114B, an implied CAGR of 6.8%, but also reiterated its 2024 revenue guidance of $92.0B-$94.5B. At the midpoint of these ranges, we note that the cadence of revenue growth guidance suggests just 2.3% in 2024, but then accelerating ~4x to the 9% range in 2025 and 2026, which we think is highly aggressive barring a major uptick in market volumes. On the margin

United Parcel Service (NYSE:UPS) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/16/2024 15.5% Baird $165 → $170 Upgrades Neutral → Outperform 02/06/2024 18.9% UBS $160 → $175 Upgrades Neutral → Buy 01/31/2024 18.9% Raymond James $185 → $175 Maintains Strong Buy 01/31/2024 8.71% BMO Capital $165 → $160 Maintains Market Perform 01/31/2024 1.92% Susquehanna $155 → $150 Maintains Neutral 01/31/2024 — Argus Research Downgrades Buy → Hold 01/31/2024 -1.48% Barclays $150 → $145 Maintains Equal-Weight 01/16/2024 25.7% Raymond James $170 → $185 Maintains Strong Buy 01/10/2024 29.09% Stifel $180 → $190 Maintains Buy 12/26/2023 5.31% Daiwa Capital → $155 Downgrades Outperform → Neutral 12/21/2023 5.99% JP Morgan $165 → $156 Maintains Neutral 10/11/2023 20.94% JP Morgan $186 → $178 Maintains Neutral 10/02/2023 8.71% Susquehanna $173 → $160 Maintains Neutral 09/29/2023 35.89% Raymond James $205 → $200 Maintains Strong Buy 09/29/2023 15.5%