UPS Stock Falls Despite Earnings Beat, Results Seen as Solid
2022.04.26 17:31
UPS (UPS) Stock Falls Despite Earnings Beat, Results Seen as Solid
Shares of UPS (NYSE:UPS) are down over 2% today after the company reported better-than-expected Q1 adjusted EPS and revenue.
UPS reported adjusted EPS of $3.05 in the quarter, up from $2.77 per share in the year-ago quarter and topping the consensus estimates of $2.88 per share. Revenue came in at $24.38 billion, up 6.4% YoY and above the consensus projection of $23.8 billion.
U.S. package revenue totaled $15.12 billion in the period, up 8% YoY and beating the consensus estimates of $14.84 billion. UPS generated $4.88 billion in international package revenue, up 5.8% YoY and in line with the analyst expectations of $4.87 billion. Supply chain solutions revenue came in at $4.38 billion, up 2% YoY and compared to the estimates of $3.97 billion.
For the full year, the company reiterated its revenue forecast of $102 billion, compared to the consensus estimates of $102.13 billion.
UPS also said it plans to double its share repurchase target this year to $2 billion and expects dividend payments of roughly $5.2 billion this year.
BMO analyst Fadi Chamoun noted that the beat was driven by Supply Chain Solutions while International results were below expectation.
Cowen analyst Helane Becker said she expected the UPS stock to “trade up on the earnings beat, the reaffirmed 2022 guidance and the additional planned stock repurchases.”
“The main difference in our estimates vs the actual results was in US Domestic package, where we underestimated 1Q revenue. In addition, we overestimated 1Q expenses associated with purchased transportation,” she said in a client note.
Vital Knowledge described results as “solid.”
By Senad Karaahmetovic
