United Parcel Service Inc (UPS) Q2 2024 Earnings Report

Executive Summary

In Q2 2024, United Parcel Service Inc (UPS) reported consolidated revenues of $21.8 billion, representing a 1.1% decline year-over-year. Although they returned to positive volume growth in the U.S. for the first time in nine quarters, challenges persisted in profitability with operating profit down 29.3% at $2.1 billion, leading to an operating margin of 9.5%. Management underscored the impact of new labor contracts and strategic shifts in product mix as key factors influencing performance. The company aims for an adjusted 2024 revenue of approximately $93 billion, with expectations for improved margins in the latter half of the year amidst robust operational adjustments and cost-saving initiatives.

Key Performance Indicators

Revenue

21.77B

QoQ: 0.49% | YoY:-1.29%

Gross Profit

3.78B

17.30% margin

QoQ: 5.74% | YoY:35.83%

Operating Income

1.93B

QoQ: 13.07% | YoY:-30.61%

Net Income

1.41B

QoQ: 26.59% | YoY:-32.29%

EPS

1.65

QoQ: 26.92% | YoY:-32.10%

Revenue Trend

Margin Analysis

Key Insights

Revenue: $21.8 billion (YoY: -1.1%, QoQ: +0.5%) Operating Income: $2.1 billion (YoY: -29.3%) Net Income: $1.41 billion (YoY: -32.3%) EPS: $1.65 (YoY: -32.1%) Current Ratio: 1.25 Debt-to-Equity Ratio: 1.55 Free Cash Flow: $1.06 billion Management noted a substantial focus on cost management through initiatives like ‘fit-to-serve’, expecting $1 billion in savings by year-end, which contributed to improved cost per piece performance despite rising labor rates. The average daily vo...

Financial Highlights

Revenue: $21.8 billion (YoY: -1.1%, QoQ: +0.5%)
Operating Income: $2.1 billion (YoY: -29.3%)
Net Income: $1.41 billion (YoY: -32.3%)
EPS: $1.65 (YoY: -32.1%)
Current Ratio: 1.25
Debt-to-Equity Ratio: 1.55
Free Cash Flow: $1.06 billion
Management noted a substantial focus on cost management through initiatives like ‘fit-to-serve’, expecting $1 billion in savings by year-end, which contributed to improved cost per piece performance despite rising labor rates. The average daily volume in the U.S. increased by 0.7%.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	21.77B	-1.29%	0.49%
Gross Profit	3.78B	35.83%	5.74%
Operating Income	1.93B	-30.61%	13.07%
Net Income	1.41B	-32.29%	26.59%
EPS	1.65	-32.10%	26.92%

Key Financial Ratios

currentRatio

1.25

grossProfitMargin

17.3%

operatingProfitMargin

8.86%

netProfitMargin

6.47%

returnOnAssets

2.03%

returnOnEquity

8.27%

debtEquityRatio

1.55

operatingCashFlowPerShare

$2.33

freeCashFlowPerShare

$1.24

dividendPayoutRatio

96%

priceToBookRatio

6.83

priceEarningsRatio

20.65

Net Income vs. Revenue

Expense Breakdown

Competitive Position

Company	Gross Margin	Operating Margin	Return on Equity	P/E Ratio
UPS Focus	17.30%	8.86%	8.27%	20.65%
GXO	12.60%	3.09%	1.31%	39.12%
JBHT	10.60%	7.02%	3.33%	30.11%
EXPD	12.20%	9.18%	8.06%	24.28%
CHRW	7.49%	4.31%	8.36%	20.53%

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q4 2024	25,301.00	2.01	+1.5%	View
Q3 2024	22,245.00	1.80	+5.6%	View
Q2 2024	21,771.00	1.64	-1.3%	View
Q1 2024	21,665.00	1.30	-5.5%	View
Q4 2023	24,917.00	1.87	-7.8%	View

United Parcel Service Inc (UPS) Q2 2024 Earnings Report

Earnings Highlights

United Parcel Service Inc (UPS) Q2 2024 Results: Navigating Through a Complex Landscape

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

United Parcel Service Inc (UPS) Q2 2024 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

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