UPS Q1 Profit Down, But Tops Estimates; Confirms FY24 View

(RTTNews) - United Parcel Service, Inc. (UPS), while reporting weak profit and revenues in its first quarter, on Tuesday reaffirmed its fiscal 2024 outlook.

In pre-market activity on the NYSE, UPS shares were gaining around 2.2 percent to trade at $148.50.

For the full year 2024, the company continues to expect revenue to range from approximately $92.0 billion to $94.5 billion and consolidated adjusted operating margin to range from approximately 10 percent to 10.6 percent.

Analysts on average expect the company to report revenues of $93.03 billion, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Capital expenditures are still estimated to be approximately $4.5 billion for the year.

In its first quarter, net income was $1.11 billion or $1.30 per share, down 41.3 percent from $1.90 billion or $2.19 per share a year ago. Adjusted earnings were $1.22 billion or $1.43 per share, compared to $1.90 billion or $2.20 per share in the same period in 2023.

The company's consolidated operating profit was $1.6 billion, down 36.5 percent from the prior year, and down 31.5 percent on an adjusted basis.

Consolidated revenues were $21.71 billion, a 5.3 percent decrease from $22.93 billion in the first quarter of 2023

The Street was looking for earnings of $1.30 per share on revenues of $21.87 billion for the quarter.

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