UPS Delivers Mixed Bag Of Q1 Results, Maintains Guidance Despite Lower Volumes
Portfolio Pulse from Lekha Gupta
UPS reported mixed Q1 FY24 results with a 5.3% Y/Y revenue decline to $21.7 billion, missing consensus estimates. Adjusted EPS fell to $1.43 from $2.20 but beat the $1.30 consensus. Operating profit dropped significantly, with declines across all segments. Despite this, UPS maintains its 2024 outlook, expecting $92-$94.5 billion in revenue. The company also announced a significant air cargo contract with USPS. UPS shares rose 0.30% in premarket trading. Exposure to UPS can be gained through IYT and TPOR ETFs.
April 23, 2024 | 12:08 pm
News sentiment analysis
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POSITIVE IMPACT
IYT, an ETF that provides exposure to U.S. transportation stocks including UPS, may see an impact due to UPS's mixed Q1 results and its significant contract win with USPS.
As UPS is a component of the IYT ETF, its mixed Q1 results and positive news about the USPS contract could lead to a short-term positive impact on IYT's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
POSITIVE IMPACT
TPOR, a leveraged ETF focusing on the transportation sector, might be influenced by UPS's recent earnings report and its new contract with USPS.
Given TPOR's leveraged exposure to the transportation sector, UPS's earnings and the USPS contract announcement could have a magnified impact on its short-term price movement.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 75
POSITIVE IMPACT
UPS reported a revenue decline and a significant drop in operating profit in Q1 FY24 but beat EPS estimates and reaffirmed its 2024 outlook. It also secured a major contract with USPS.
Despite the revenue decline and lower operating profit, the EPS beat and reaffirmed outlook, combined with the significant USPS contract, are likely to positively impact investor sentiment in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100