Dec 31, 2023

UPS Q4 2023 Earnings Report

UPS's Q4 2023 earnings were released, showing a decrease in revenue and diluted EPS compared to the previous year, but the company focused on controlling costs and strengthening its foundation for future growth.

Key Takeaways

UPS announced Q4 2023 consolidated revenues of $24.9 billion, a 7.8% decrease from Q4 2022. Diluted earnings per share were $1.87, with adjusted diluted earnings per share at $2.47, which is 31.8% below the same period in 2022. The company's performance was impacted by market rate declines and excess market capacity.

Consolidated revenues reached $24.9 billion, a decrease of 7.8% compared to the previous year.

Diluted EPS was reported at $1.87, while adjusted diluted EPS was $2.47, down 31.8% from the previous year.

The company declared a quarterly dividend of $1.63, a $0.01 increase per share.

Revenue decreases were driven by declines in average daily volume across U.S. Domestic and International segments.

Total Revenue
$24.9B
Previous year: $27B
-7.8%
EPS
$2.47
Previous year: $3.62
-31.8%
Gross Profit
$4.82B
Previous year: $3.2B
+50.8%
Cash and Equivalents
$6.07B
Previous year: $5.6B
+8.4%
Free Cash Flow
$362M
Previous year: $841M
-57.0%
Total Assets
$70.9B
Previous year: $71.1B
-0.4%

UPS

UPS

UPS Revenue by Segment

Forward Guidance

For the full year 2024, UPS expects revenue to range from approximately $92.0 billion to $94.5 billion and consolidated adjusted operating margin to range from approximately 10.0% to 10.6%. The company is planning capital expenditures of about $4.5 billion and dividend payments of around $5.4 billion, subject to board approval. The effective tax rate is expected to be around 23.5%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income