Mar 31, 2023

UPS Q1 2023 Earnings Report

UPS's financial performance decreased due to lower volume than anticipated and demand weakness in Asia.

Key Takeaways

UPS announced Q1 2023 consolidated revenues of $22.9 billion, a 6.0% decrease from Q1 2022. Diluted earnings per share were $2.19, and adjusted diluted earnings per share were $2.20, 27.9% below the same period in 2022.

Consolidated revenues reached $22.9B, compared to $24.4B last year.

Consolidated operating profit was $2.5B; adjusted consolidated operating profit was $2.6B.

Diluted EPS was $2.19; adjusted diluted EPS was $2.20, compared to $3.05 last year.

The company updated its 2023 financial guidance.

Total Revenue
$22.9B
Previous year: $24.4B
-6.0%
EPS
$2.2
Previous year: $3.05
-27.9%
Gross Profit
$2.54B
Previous year: $3.25B
-21.8%
Cash and Equivalents
$6.19B
Previous year: $12.2B
-49.3%
Free Cash Flow
$1.75B
Previous year: $3.93B
-55.5%
Total Assets
$72.2B
Previous year: $70.1B
+3.0%

UPS

UPS

UPS Revenue by Segment

Forward Guidance

UPS expects full-year revenue and adjusted operating margin to be at the low end of its previously guided range.

Positive Outlook

  • Consolidated revenue of around $97.0 billion.
  • Consolidated adjusted operating margin of around 12.8%.
  • Capital expenditures of approximately $5.3 billion.
  • Dividend payments, subject to board approval, of about $5.4 billion.
  • Share repurchases targeted to be around $3 billion.

Revenue & Expenses

Visualization of income flow from segment revenue to net income