Jun 30, 2024

UPS Q2 2024 Earnings Report

UPS reported mixed results with revenue decline but volume growth in the U.S.

Key Takeaways

UPS announced Q2 2024 consolidated revenues of $21.8 billion, a 1.1% decrease from the previous year. Diluted EPS was $1.65, with adjusted diluted EPS at $1.79, a 29.5% decrease from the same period last year. The company updates its full-year financial guidance and restarts share repurchase program, targeting $1B annually.

Consolidated revenues reached $21.8 billion, a 1.1% decrease year-over-year.

Consolidated operating margin was 8.9%, with an adjusted operating margin of 9.5%.

Diluted EPS was $1.65, and adjusted diluted EPS was $1.79, down 29.5% compared to last year.

Full-year 2024 financial guidance was updated, and a share repurchase program was restarted, targeting $1B annually.

Total Revenue
$21.8B
Previous year: $22.1B
-1.1%
EPS
$1.79
Previous year: $2.54
-29.5%
Gross Profit
$3.78B
Previous year: $2.78B
+35.8%
Cash and Equivalents
$6.53B
Previous year: $4.81B
+35.7%
Free Cash Flow
$1.06B
Previous year: $2.03B
-47.7%
Total Assets
$69.4B
Previous year: $70.3B
-1.3%

UPS

UPS

UPS Revenue by Segment

Forward Guidance

UPS updates its full-year, consolidated financial targets for 2024.

Positive Outlook

  • Consolidated revenue expected to be approximately $93.0 billion
  • Consolidated adjusted operating margin expected to be approximately 9.4%
  • Capital expenditures of approximately $4.0 billion
  • Targeting around $500 million in share repurchases
  • Returning to volume growth in the U.S. for the first time in nine quarters

Challenges Ahead

  • Excludes the impacts of pending disposition of Coyote
  • Excludes announced acquisition
  • Operating profit declined in the first half of 2024 from what was reported last year
  • Revenue decreased 1.9% in U.S. Domestic segment
  • Revenue decreased 1.0% in International segment

Revenue & Expenses

Visualization of income flow from segment revenue to net income