Dec 31, 2020

UPS Q4 2020 Earnings Report

UPS reported Q4 2020 earnings with revenue growth across all segments.

Key Takeaways

UPS announced strong fourth-quarter results, with consolidated revenue increasing by 21.0% to $24.9 billion. The company's adjusted diluted EPS rose by 26.1% to $2.66. The company also started transporting COVID-19 vaccines during the quarter.

Consolidated revenue increased 21.0% to $24.9B; Growth Across All Segments

Consolidated Operating Profit Up 1.6% to $2.2B, Up 26.0% on an Adjusted* Basis

Adjusted Diluted EPS of $2.66, Up 26.1%

Began transporting COVID-19 vaccines

Total Revenue
$24.9B
Previous year: $20.6B
+21.0%
EPS
$2.66
Previous year: $2.11
+26.1%
Intl Avg Revenue/Package
$17.3
Previous year: $16.6
+3.8%
Gross Profit
$2.17B
Previous year: $2.13B
+1.6%
Cash and Equivalents
$5.91B
Previous year: $5.24B
+12.8%
Free Cash Flow
-$1.02B
Previous year: $902M
-212.7%
Total Assets
$62.4B
Previous year: $57.9B
+7.9%

UPS

UPS

UPS Revenue by Segment

Forward Guidance

Given continued economic uncertainty due to the global pandemic, the Company is not providing revenue or diluted earnings per share guidance. It is providing full-year guidance for capital allocation.

Positive Outlook

  • Capital expenditures are planned to be about $4.0 billion.
  • Dividends are expected to grow, subject to Board approval.
  • Long-term debt maturities of $2.5 billion will be repaid when they come due.
  • Effective tax rate is expected to be approximately 23.5%.
  • The Company has no plans to repurchase shares or access the debt capital markets in 2021.

Revenue & Expenses

Visualization of income flow from segment revenue to net income