NYSE$UPS

United Parcel Service Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

UPS reported a decrease in revenue and operating profit compared to the same quarter last year, but reached a labor agreement with the Teamsters.

UPS's Q2 2023 consolidated revenues were $22.1 billion, a 10.9% decrease from Q2 2022. Diluted EPS was $2.42, and adjusted diluted EPS was $2.54, a 22.8% decrease from the same period in 2022. The company has updated its full-year 2023 consolidated revenue target to approximately $93 billion and expects an adjusted operating margin of around 11.8%.

  • Consolidated revenues reached $22.1B, a decrease from $24.8B last year.
  • Consolidated operating profit was $2.8B; adjusted consolidated operating profit was $2.9B.
  • Diluted EPS was $2.42; adjusted diluted EPS was $2.54, compared to $3.29 last year.
  • A labor agreement was reached with the Teamsters, covering over 300,000 UPS employees.

Headline financials

Total Revenue

$22.1B

Previous: $24.8B-10.9%
EPS (adj)

$2.54

Previous: $3.29-22.8%
Capital Expenditures

-$1.82B

Previous: -$1.39B-31.1%
Free Cash Flow

$261M

Previous: $1.46B-82.1%
Net Income

$2.08B

Previous: $2.85B-27.0%
Operating Income

$2.78B

Previous: $3.54B-21.4%
Gross Profit

-$1.55B

Previous: -$2.12B+26.9%
Cash & Equivalents

$4.81B

Previous: $11.7B-59.0%
Total Assets

$70.3B

Previous: $70.1B+0.4%
Stock-Based Comp

$39M

Previous: $231M-83.1%

Revenue & EPS history

UPS · Revenue · Quarterly

$22.1B

Q2 2023-10.9%vs Q2 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

UPS · $22.1B total across 3 segments · Q2 2023

  • U.S. Domestic Package
    $14.4B-6.9%
  • International Package
    $4.42B-13.0%
  • Supply Chain Solutions
    $3.24B-23.4%

Forward guidance

UPS is updating its full-year 2023 consolidated revenue and adjusted operating margin targets primarily to reflect the volume impact from labor negotiations and the costs associated with the tentative agreement reached with the International Brotherhood of Teamsters on July 25, 2023.

Tailwinds

  • Capital expenditures are expected to be about $5.3 billion.
  • Dividend payments are projected to be around $5.4 billion, subject to board approval.
  • Share repurchases are anticipated to be around $3 billion.

Headwinds

  • Full-year 2023 consolidated revenue is now expected to be about $93 billion.
  • Adjusted operating margin is projected to be around 11.8%.

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 2023

Historical avgQ2 2023

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro