NYSE$UPS

United Parcel Service Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

UPS's Q3 2020 earnings were released, showing revenue growth across all segments.

UPS announced Q3 2020 consolidated revenue of $21.2 billion, a 15.9% increase over Q3 2019. Net income was $2.0 billion, up 11.8% and diluted EPS was $2.24, up 11.4%.

  • Consolidated revenue increased by 15.9%, with growth across all segments.
  • Diluted EPS increased by 11.4% to $2.24, while adjusted diluted EPS increased by 10.1% to $2.28.
  • Year-to-date cash from operations reached $9.3 billion, with adjusted free cash flow of $5.9 billion.
  • Average daily volume increased 13.5% year over year.

Headline financials

Total Revenue

$21.2B

Previous: $18.3B+15.9%
EPS (adj)

$2.28

Previous: $2.07+10.1%
Capital Expenditures

-$3.22B

Previous: -$4.34B+25.8%
Free Cash Flow

-$1.26B

Previous: -$2.59B+51.2%
Net Income

$1.96B

Previous: $1.75B+11.8%
Operating Income

$2.36B

Previous: $2.13B+11.0%
Gross Profit

$20.2B

Previous: $17.1B+18.1%
Cash & Equivalents

$8.84B

Previous: $4.04B+118.8%
Total Assets

$62.4B

Previous: $53.3B+17.1%
Stock-Based Comp

$140M

Previous: $203M-31.0%

Revenue & EPS history

UPS · Revenue · Quarterly

$21.2B

Q3 2020+15.9%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

UPS · $21.2B total across 3 segments · Q3 2020

  • U.S. Domestic Package
    $13.2B+15.5%
  • International Package
    $4.09B+17.0%
  • Supply Chain Solutions
    $3.93B+16.5%

Forward guidance

UPS is not providing consolidated revenue and diluted earnings per share guidance due to the uncertainty around the timing and pace of the economic recovery. However, the company is collaborating with customers and using tools to control volume and ensure network resiliency.

Tailwinds

  • Better, not Bigger approach had a positive impact on performance.
  • New initiatives launched to further reduce costs.
  • Collaborating with customers to control volume.
  • Using proven tools to ensure the resiliency of our network.
  • Focused on delivering a successful peak and generating cash returns.

Headwinds

  • Uncertainty around the timing and pace of the economic recovery.
  • Unable to predict the extent of the business impact of the coronavirus pandemic.
  • Unable to predict the duration of the coronavirus pandemic.
  • Unable to reasonably estimate its operating performance in future quarters.
  • Not providing consolidated revenue and diluted earnings per share guidance.

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 Q3 2020

Historical avgQ3 2020

-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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