UPS Q4 Revenue Dips In Key Segments, Raises Dividend, Issues Sub Par 2024 Outlook
Portfolio Pulse from Akanksha Bakshi
United Parcel Service Inc (UPS) reported a Q4 revenue decline of 7.8% Y/Y to $24.92 billion, missing consensus estimates. Adjusted EPS was $2.47, matching consensus but down from $3.62 in Q4 2022. Operating profit decreased by 22.5% Y/Y. Revenue fell across U.S. Domestic, International, and Supply Chain Solutions segments. UPS raised its quarterly dividend by $0.01 to $1.63 per share. The 2024 outlook is below consensus expectations, with projected revenue of $92-$94.5 billion and an adjusted operating margin of 10%-10.6%. UPS shares dropped 6.77% in premarket trading.
January 30, 2024 | 1:54 pm
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UPS reported lower Q4 revenue and operating profit, with a decline in all segments. Despite a dividend increase, the 2024 outlook is weaker than expected, leading to a premarket stock price drop.
The reported decline in revenue and operating profit, along with a weaker outlook for 2024, are negative indicators for UPS's financial health and future performance. The premarket stock price reaction suggests investors are concerned, likely leading to a short-term negative impact on the stock.
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IMPORTANCE 90
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