World’s Largest Package Delivery Co. Posts Strong Q4 Earnings

Source: Streetwise Reports   02/01/2022

Shares of United Parcel Service Inc. traded 13.5% higher establishing a new 52-week high after the company reported Q4/21 financial results that included a 15% YoY increase in consolidated revenue and raised its quarterly dividend by 49% to $1.52/share.

Before U.S financial markets opened today, global logistics and shipping company United Parcel Service Inc. (UPS:NYSE), announced fourth quarter 2021 financial results for the period ended December 31, 2021.

The world’s largest package delivery firm reported that in Q4/21, its total consolidated revenue increased by 11.5% to $27.8 billion, compared to $24.9 billion in Q4/20.

The company advised that during the same period, consolidated operating profit rose by 91.0% to $3.9 billion, versus $2.0 billion in the prior year’s corresponding quarter.

United Parcel Service stated that it posted diluted earnings per share (EPS) of $3.52 in Q4/21, compared to a net loss of $3.84 per diluted share in Q4/20. The company added that on an adjusted basis, diluted EPS increased by 35.0% to $3.59, compared to $2.66 in Q4/20.

The company’s CEO Carol Tomé stated, “I want to thank all UPSers for their outstanding efforts throughout the holiday season and for once again delivering industry-leading service to our customers…The execution of our strategy is delivering positive financial results and driving strong momentum as we move into 2022.”

The company provided a breakdown of revenue by its three core business units and indicated that its U.S. domestic business achieved revenues of $17.697 billion during Q4/21. The amount was 12.4% higher than the $15.744 billion it registered in Q4/20 and according to the company was driven largely by a 10.5% increase in revenue per piece.

The firm stated that it also saw revenue gains in its international segment and listed that international revenue grew 13.1% year-over-year to $5.397 billion, which it attributed to a 16.4% increase in revenue per piece.

UPS additionally mentioned that is supply chain solutions business that includes its forwarding and logistics business, posted $4.677 billion in revenue for Q4/21, which represents a 6.7% increase over the $4.382 billion recorded in Q4/20.

The company reported that for FY/21, consolidated revenue increased by 15% to $97.3 billion, compared to $84.6 billion in FY/20.

UPS stated that for FY/21 it posted diluted EPS of $14.68 and adjusted diluted EPS of $12.13, versus diluted EPS of $1.54 and adjusted diluted EPS of $8.23 in FY/20.

The company advised that its Board of Directors has authorized a $1.52 per share quarterly dividend that will be paid on March 10, 2022, to Class A and Class B shareholders of record as of February 22, 2022

The company offered some forward guidance for FY/22 on an adjusted non-GAAP basis. UPS advised that for FY/22, it expects consolidated revenues totaling $102 billion. The firm stated that it estimates adjusted operating margin will be about 13.7% and it will be able to deliver an adjusted return on invested capital above 30%.

UPS is a well-known multi-billion-dollar global shipping and package delivery company headquartered in Atlanta, Ga. The firm delivers more than 6 billion packages annually and employs over 540,000 people. The company provides a broad range of logistics solutions including the transportation of packages and freight via roads, rails, air, and oceans to more than 220 countries worldwide.

UPS began the day with a market cap of around $175.7 billion with approximately 869.1 million shares outstanding. UPS shares opened more than 11% higher today at $225.005 (+$22.795, +11.27%) over yesterday’s $202.21 closing price and reached a new 52-week high price this morning of $233.72. The stock has traded today between $222.01 and $233.72 per share and is currently trading at $229.63 (+$27.42, +13.56%).

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