United Parcel Service (UPS) thumps Q1 estimates, rides e-com boom

April 26, 2022 10:02 AM PDT | By Team Kalkine Media

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United Parcel Service (UPS) thumps Q1 estimates, rides e-com boom — Image source: © Jetcityimage | Megapixl.com

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Highlights

United Parcel Service (NYSE:UPS) posted its first-quarterly profits for fiscal 2022 on Tuesday, riding on the back of a thriving e-commerce trend.

The parcel delivery company reported consolidated revenues of US$24.4 bn.

UPS reaffirmed its full-year consolidated revenue projection of about US$102 billion for 2022.

United Parcel Service (UPS), one of the world’s biggest logistics companies, on Tuesday posted consolidated first-quarter revenue of US$24.4 billion for fiscal 2022, beating estimates.

UPS raised its prices to cash in on the e-commerce boom, helping the company to reap rich profits.

Extolling the results, UPS CEO Carol Tomé said: “The agility of our network and the continued execution of our strategy delivered another quarter of strong financial performance.” The results, said Tome, have paved the way for achieving the company’s 2022 consolidated targets.

The Seattle, Washington-based company’s consolidated operating profit surged 17.6% to US$3.3 billion from the previous year. It was up 12.1% on an adjusted basis. Its adjusted diluted earnings per share (EPS) grew 10.1% to US$3.05 compared to the year-ago quarter.

UPS has also divulged plans to double the number of shares repurchases for 2022. This takes the target to US$2 billion for the year.

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UPS full-year revenue prediction

The parcel delivery enterprise reiterated its full-year revenue projection of about US$102 billion. UPS said it anticipates a consolidated adjusted operating margin of about 13.7% plus an adjusted return on invested capital of over 30%. Subject to its board’s approval, it is also likely to give out dividend payments of about US$5.2 billion.

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In its domestic segment, UPS garnered a 7.7% higher revenue taking it to US$15.1 billion.

The company directed its focus into more profitable sectors. So, it collaborated more with healthcare businesses and small- and medium-sized companies, which eventually showed in its quarterly earnings.

Bottom line:

UPS is a large organization offering a swathe of integrated logistics solutions for customers spanning 220 nations and territories. The company has a humongous employee strength of 534,000 people. Its revenue for 2021 was US$97.3 billion.

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