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Q2 revenue and profit fell short of expectations, and UPS (UPS.US) rose nearly 8% before the opening bell.
AInvestTuesday, Jul 23, 2024 7:10 am ET
1min read
UPS --

United Parcel (UPS.US) announced its 2024 Q2 earnings before the market opened. The data showed that UPS Q2 revenue was $21.8 billion, down 1.1% YoY, $440 million below expectations; adjusted EPS was $1.79, down 29.5% YoY, $0.20 below expectations.

It is worth mentioning that the company's domestic business volume in the US market recovered positive growth for the first time in nine quarters. As expected, the company's operating profit in the first half of 2024 decreased YoY, but CEO Carol Tomé said that the company expects future operating profit to resume growth.

From the business, UPS Q2 domestic business revenue in the US was $11.12 billion, down 1.9% YoY, mainly due to the decrease in revenue per unit caused by the change in product structure; Q2 international business revenue was $4.37 billion, down 1% YoY, mainly due to the decrease in daily business volume by 2.9%; supply chain solutions revenue was $3.32 billion, up 2.6% YoY, mainly due to the growth of logistics business including healthcare.

Looking ahead, UPS updated its full-year financial guidance, expecting consolidated revenue of about $93 billion, adjusted operating margin of about 9.4%, capital expenditure of about $4 billion, and stock buyback target of about $500 million.

As of the time of writing, UPS shares were down 7.98% at $133.60.

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