In the first quarter of 2024, UPS (UPS) reported a solid performance, exceeding Wall Street’s earnings and revenue estimates. Adjusted earnings per share (EPS) reached $1.43, surpassing the consensus estimate of $1.31, while revenue came in at $21.7 billion, slightly below the consensus of $21.84 billion. Revenue experienced a 5.3% decline compared to the same quarter last year, which stood at $22.9 billion.
The company’s consolidated operating margin was 7.4%, with an adjusted margin of 8.0%. UPS’s CEO, Carol Tomé, expressed satisfaction with the company’s performance, highlighting the improvement in average daily volume in the U.S. throughout the quarter. She expressed optimism for future growth, stating, “We expect to return to volume and revenue growth.”
The U.S. Domestic Segment saw a 5.0% revenue decrease, driven by a 3.2% drop in average daily volume. The International Segment experienced a 6.3% revenue decrease and a 5.8% decline in average daily volume. The Supply Chain Solutions segment faced a 5.3% revenue decline, primarily due to market rate declines in forwarding.
UPS reaffirmed its full-year 2024 financial guidance, expecting consolidated revenue to range from $92.0 billion to $94.5 billion, with the midpoint slightly below the analysts’ consensus of $93.03 billion. The company anticipates a consolidated adjusted operating margin between 10.0% and 10.6%, with capital expenditures around $4.5 billion.
Despite a challenging economic environment, UPS’s ability to exceed analysts’ expectations for adjusted EPS and revenue highlights its operational resilience. This has instilled renewed optimism among investors, as evident in the 2.5% rise in the company’s stock price.
