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Jun 30, 2023
UPS Q2 2023 Earnings Report
UPS reported a decrease in revenue and operating profit compared to the same quarter last year, but reached a labor agreement with the Teamsters.
Key Takeaways
UPS's Q2 2023 consolidated revenues were $22.1 billion, a 10.9% decrease from Q2 2022. Diluted EPS was $2.42, and adjusted diluted EPS was $2.54, a 22.8% decrease from the same period in 2022. The company has updated its full-year 2023 consolidated revenue target to approximately $93 billion and expects an adjusted operating margin of around 11.8%.
Consolidated revenues reached $22.1B, a decrease from $24.8B last year.
Consolidated operating profit was $2.8B; adjusted consolidated operating profit was $2.9B.
Diluted EPS was $2.42; adjusted diluted EPS was $2.54, compared to $3.29 last year.
A labor agreement was reached with the Teamsters, covering over 300,000 UPS employees.
Revenue by Segment
Forward Guidance
UPS is updating its full-year 2023 consolidated revenue and adjusted operating margin targets primarily to reflect the volume impact from labor negotiations and the costs associated with the tentative agreement reached with the International Brotherhood of Teamsters on July 25, 2023.
Positive Outlook
- Capital expenditures are expected to be about $5.3 billion.
- Dividend payments are projected to be around $5.4 billion, subject to board approval.
- Share repurchases are anticipated to be around $3 billion.
Challenges Ahead
- Full-year 2023 consolidated revenue is now expected to be about $93 billion.
- Adjusted operating margin is projected to be around 11.8%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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