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Mar 31, 2020
UPS Q1 2020 Earnings Report
UPS's Q1 2020 earnings were released, showing resilience amidst the COVID-19 pandemic.
Key Takeaways
UPS announced first-quarter 2020 diluted earnings per share of $1.11 and adjusted diluted earnings per share of $1.15. Revenue increased to $18.035 billion, driven by growth in business-to-consumer shipments and gains in healthcare, but results were adversely affected by the disruption to customers from the global coronavirus pandemic.
Focused on the Health and Safety of Employees and the Public
Supported Customers with Near Record On-Time Service
COVID-19 Weighed on First-Quarter Results
Cash from Operations of $2.6B; Adjusted* Free Cash Flow of $1.6B
UPS
UPS
UPS Revenue by Segment
Revenue by Segment
U.S. Domestic Revenue
CapyFin.comInternational Revenue
CapyFin.comSupply Chain Solutions Revenue
CapyFin.com Forward Guidance
UPS is withdrawing its previously issued 2020 revenue and diluted earnings per share growth guidance due to the uncertainty caused by the coronavirus pandemic.
Positive Outlook
- The company expects 2020 capital expenditures will be reduced by approximately $1 billion from previous estimates.
- UPS is suspending share buybacks for 2020, reducing its planned full-year repurchase target by approximately $783 million.
- The company will continue to adapt through this challenging period.
- Prioritize investments and operational decisions that put UPS in the best financial position.
- Take a disciplined and balanced approach to capital allocation and are confident in our liquidity position including our commitments to capital management and dividends.
Challenges Ahead
- UPS is unable to predict the extent of the business impact or the duration of the coronavirus pandemic.
- The company is unable to reasonably estimate its operating performance in future quarters.
- Revenue was negatively impacted by widespread reductions in global economic activity.
- Toward the end of the quarter, UPS Freight and Coyote experienced depressed volume levels primarily from mandated stay-at-home restrictions and businesses closures.
- Commercial deliveries declined while residential deliveries were elevated.
Revenue & Expenses
Visualization of income flow from segment revenue to net income