United Parcel Service (UPS) – Get Free Report posted stronger-than-expected fourth quarter earnings Tuesday, because of a give attention to higher-margin packages, however missed Avenue income forecasts as worldwide deliveries slumped.
UPS stated earnings for the three months ending in December had been pegged at $3.96 per share, up from a lack of 90 cents per share over the identical interval final 12 months and firmly forward of the Avenue consensus forecast of $3.59 per share. Group revenues, the corporate stated, fell 2.8% to $27 billion, simply shy of analysts’ estimates of a $28.08 billion tally.
Home section revenues rose 3.1% to $18.25 billion, UPS stated, powered partly by a 7.2% increase in revenue-per-piece, a key {industry} metric. Worldwide revenues, in the meantime, had been down 8.3% to $4.95 billion whereas provide chain options gross sales fell 16% to $3.83 billion.
Wanting into the 2023 monetary 12 months, UPS stated it sees revenues within the area of $97 billion to $99.4 billion, with margins within the area of 12.8% to 13.6%. he group additionally stated dividend funds can be round $5.4 billion with buyback pegged at $3 billion.
“I need to thank all UPSers for delivering what issues all through the vacation season, together with industry-leading service to our prospects for the fifth consecutive 12 months,” stated CEO Carol Tomé. “For the 12 months, we reached our focused consolidated working margin and return on invested capital objectives one 12 months sooner than initially anticipated. Our ends in 2022 exhibit our technique is working.”
UPS shares had been marked 0.55% decrease in pre-market buying and selling instantly following the earnings launch to indicating a gap bell value of $176.97 every.
The group additionally declared a quarterly dividend of $1.62 per share, and licensed a brand new $5 billion share buyback plan.
Final final month, smaller rival FedEx Corp. (FDX) – Get Free Report unveiled stronger-than-expected second quarter earnings and outlined deeper cost-cuts heading into the approaching 12 months.
FedEx stated it will add one other $1 billion in price financial savings to its already-established $2.7 billion program, because it reduces FedEx Categorical flights and parks as many as eight planes. It additionally in the reduction of on Sunday deliveries and closed some home sorting warehouses.
For the three months ending in November, FedEx stated earnings got here in at $3.07 per share, effectively forward of Avenue forecasts, Revenues had been gentle, nevertheless, at $22.8 million down 2.9% from final 12 months.