$UPS (+0.09%) | Q3'24 Earnings Highlights:
๐น Adj EPS: $1.76 (Est. $1.63) ๐ข; UP +12.1% YoY
๐น Revenue: $22.2B (Est. $22.14B) ๐ข; UP +5.6% YoY
๐น Non-GAAP Operating Margin: 8.9%
Cuts FY24 Guidance:
๐ธ Revenue: ~$91.1B (Prior: $93B; Est. $91.85B) ๐
๐ธ Non-GAAP Operating Margin: Expected to reach 9.6%
Segment Performance:
U.S. Domestic Segment:
๐น Revenue: $14.45B; UP +5.8% YoY
๐น Operating Profit: $898M (Adj. $974M); UP from $571M in Q3'23
๐น Operating Margin: 6.2%; Non-GAAP Adjusted Operating Margin: 6.7%
๐ธ Growth driven by a 6.5% increase in average daily volume
International Segment:
๐น Revenue: $4.41B; UP +3.4% YoY
๐น Operating Profit: $798M (Adj. $792M); UP from $630M in Q3'23
๐น Operating Margin: 18.1%; Non-GAAP Adjusted Operating Margin: 18.0%
๐ธ Growth primarily due to a 2.5% increase in revenue per piece
Supply Chain Solutions:
๐น Revenue: $3.38B; UP +8.0% YoY
๐น Operating Profit: $289M (Adj. $217M); UP from $142M in Q3'23
๐น Operating Margin: 8.5%; Non-GAAP Adjusted Operating Margin: 6.4%
๐ธ Growth fueled by air and ocean forwarding, plus continued onboarding of USPS air cargo
Business and Strategic Updates:
๐ธ Disposition of Coyote Logistics: Completed in Q3'24; Adjustments made to revenue and margin targets accordingly
๐ธ Capex: Expected to be $4.0B in FY24
๐ธ Dividend Payments: Forecast at $5.4B, pending Board approval
CEO Carol Tomรฉ's Commentary:
๐ธ "After a challenging 18-month period, UPS has returned to revenue and profit growth. With peak season around the corner, we are prepared to deliver a successful holiday season and continue building on the progress made this quarter."