NYSE$UPS

United Parcel Service Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

UPS's financial performance for Q2 2021 was strong, marked by significant revenue and earnings growth.

UPS announced strong second-quarter 2021 results, with consolidated revenue reaching $23.4 billion, a 14.5% increase year-over-year. Consolidated operating profit rose by 47.3% to $3.3 billion, and diluted earnings per share increased by 50.2% to $3.05.

  • Consolidated revenues increased by 14.5% to $23.4 billion.
  • Consolidated operating profit grew by 47.3% to $3.3 billion.
  • Diluted EPS increased by 50.2% to $3.05.
  • Free cash flow was $6.8 billion, a 74.7% increase.

Headline financials

Total Revenue

$23.4B

Previous: $20.5B+14.5%
EPS (adj)

$3.06

Previous: $2.13+43.7%
Capital Expenditures

-$1.67B

Previous: -$2.07B+19.1%
Free Cash Flow

$1.01B

Previous: -$297M+438.7%
Net Income

$2.68B

Previous: $1.77B+51.4%
Operating Income

$3.26B

Previous: $2.21B+47.3%
Gross Profit

$22.1B

Previous: $19.6B+12.8%
Cash & Equivalents

$9.61B

Previous: $8.81B+9.0%
Total Assets

$64.9B

Previous: $62.1B+4.5%
Stock-Based Comp

$206M

Previous: $137M+50.4%

Revenue & EPS history

UPS · Revenue · Quarterly

$23.4B

Q2 2021+14.5%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

UPS · $23.4B total across 3 segments · Q2 2021

  • U.S. Domestic Package
    $14.4B+10.2%
  • International Package
    $4.82B+30.0%
  • Supply Chain Solutions
    $4.21B+14.3%

Forward guidance

For 2021, the company projects a consolidated operating margin of approximately 12.7% and a return on invested capital of approximately 28%. Capital expenditures are planned to be about $4.0 billion. The effective tax rate for the remainder of the year is expected to be around 23%.

Tailwinds

  • Consolidated operating margin of approximately 12.7% is projected.
  • Return on invested capital of approximately 28% is expected.
  • Capital expenditures are planned to be about $4.0 billion.
  • Long-term debt repayments of $2.55 billion have been completed.
  • Effective tax rate for the remainder of the year is expected to be around 23%.

Headwinds

  • Uncertainties related to the impact of the COVID-19 pandemic on business and operations.
  • Changes in general economic conditions in the U.S. or internationally.
  • Significant competition on a local, regional, national, and international basis.
  • Changes in relationships with significant customers.
  • Changes in the regulatory environment in the U.S. or internationally.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.3%

Avg return

Earnings day

-0.9%

Avg return

5 days after

-0.2%

Avg return

30 days after

48%

35 / 73 earnings

Positive

+15.4%

Q2 2020

Best reaction

-14.1%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.6%-0.6%-1.9%
Q4 2025+0.9%-0.7%+9.0%
Q3 2025+7.7%+8.1%+7.2%
Q2 2025-0.6%-0.5%-2.0%
Q1 2025-0.4%-0.7%+1.0%
Q4 2024-14.1%-16.5%-11.0%
Q3 2024+4.6%+2.2%+2.6%
Q2 2024-11.5%-11.3%-12.6%
Q1 2024+0.9%+1.5%-4.3%
Q4 2023-10.2%-10.2%-6.2%
Q3 2023-8.2%-3.9%+3.5%
Q2 2023-1.5%-3.0%-10.9%
Q1 2023-11.9%-8.2%-12.6%
Q4 2022+4.5%+8.3%+4.4%
Q3 2022+0.9%-0.2%+9.1%
Q2 2022-2.1%+3.7%+9.1%
Q1 2022-1.7%-5.1%-5.9%
Q4 2021+14.8%+11.2%+5.1%
Q3 2021+4.1%+4.7%+2.2%
Q2 2021-8.5%-8.8%-8.3%
Q1 2021+12.8%+16.0%+21.0%
Q4 2020+2.2%+5.2%+2.0%
Q3 2020-5.5%-6.6%-1.1%
Q2 2020+15.4%+17.0%+31.3%
Q1 2020-6.3%-10.4%-2.8%
Q4 2019-10.6%-10.7%-21.8%
Q3 2019-2.8%-2.4%+0.8%
Q2 2019+12.3%+12.8%+5.7%
Q1 2019-9.2%-7.2%-16.2%
Q4 2018+4.8%+6.4%+10.8%
Q3 2018-5.6%-8.0%-4.9%
Q2 2018+5.7%+5.6%+9.2%
Q1 2018+4.9%+3.5%+6.3%
Q4 2017-8.5%-11.5%-17.2%
Q3 2017+1.9%-0.9%-4.6%
Q2 2017-2.3%-1.9%+1.0%
Q1 2017-0.1%-0.7%-1.6%
Q4 2016-10.0%-8.6%-9.5%
Q3 2016-0.8%-1.6%+7.0%
Q2 2016-0.7%-0.4%+0.2%
Q1 2016-1.3%
Q4 2015+1.3%
Q3 2015-3.3%
Q2 2015+6.1%
Q1 2015+3.9%
Q4 2014+0.4%
Q3 2014+1.8%
Q2 2014-3.2%
Q1 2014-1.9%
Q4 2013-0.1%
Q3 2013+3.5%
Q2 2013-0.7%
Q1 2013+2.6%
Q4 2012-1.6%
Q3 2012+2.2%
Q2 2012-4.7%
Q1 2012-1.5%
Q2 2011+0.5%
Q4 2011+0.5%
Q3 2011-0.1%
Q1 2011-0.2%
Q2 2010-1.5%
Q4 2010-1.5%
Q3 2010+0.2%
Q1 2009+3.8%
Q1 2010-0.6%
Q2 2009+0.7%
Q4 2007+0.7%
Q4 2009+0.7%
Q3 2008+3.2%
Q3 2009+3.2%
Q2 2008+0.9%
Q4 2008+0.9%

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