UPS Earnings Q4 2022

UPS electric vehicle delivery vans on December 2, 2022 in London, United Kingdom.

Mike Kemp | in pictures | Getty Images

United Parcel Service reported fourth-quarter revenue Tuesday morning below Wall Street’s expectations, as the company continues to see volumes decline amid cooling demand.

Here’s how UPS performed in the fourth quarter compared with what Wall Street expected, based on an average of analyst estimates compiled by Refinitiv:

  • Adjusted Earnings Per Share: $3.62 vs $3.59.
  • total revenue: $27.03 billion versus $28.09 billion.

For the three-month period ended December 31, the company reported adjusted net income of $3.15 billion, or $3.62 per share, compared to $3.15 billion, or $3.59 per share, a year ago.

The company on Tuesday offered full-year guidance that fell short of analysts’ expectations. It is forecasting revenue between $97 billion and $99.4 billion, compared with analyst estimates of $99.98 billion.

In the fourth quarter, revenue for UPS’s home segment, which accounts for about two-thirds of the company’s revenue and accounts for most of its business-to-consumer transactions, increased 3%. Revenue from international shipping decreased 8% due to lower volumes and lower demand in China.

Its supply chain business saw revenue decline 18%, offset by a decrease in volume in its freight forwarding business, though this was partially offset by its healthcare segment.

Shares of UPS were up slightly on lower volume in premarket trading.

The increased prices have been a boon for the company’s margins as volumes have gone down and costs have gone up. ups and rival fedex Shipping rates increase by 6.9% through the end of 2022. last quarterUPS also announced that it would cut capital expenditures by $500 million, for example, by leasing rather than buying some locations.

Shares of the shipping company are down 10% in 2022 as consumer spending adjusts to inflation and comes down from pandemic highs.

Leave a Comment