United Parcel 2025 Q1 Earnings Beats Expectations with Net Income Growth of 6.6%

United Parcel (UPS), ranking 162nd by market capitalization, reported its fiscal 2025 Q1 earnings on April 29th, 2025. The earnings beat market estimates, with UPS posting an adjusted profit per share of $1.49, surpassing expectations of $1.38. Revenue also exceeded Wall Street's forecast, totaling $21.55 billion against the anticipated $21.05 billion. Despite the macroeconomic uncertainties, UPS maintained a cautious approach by holding back any updates to its full-year outlook. The company anticipates further guidance during its earnings conference call. This strategic decision reflects the challenges UPS faces in adapting to an evolving market landscape while striving to remain resilient and competitive.

Revenue
United Parcel's revenue for fiscal 2025 Q1 declined by 0.7% compared to the same period last year, amounting to $21.55 billion. The U.S. Domestic Package segment generated $14.46 billion, showcasing growth in air cargo and improved revenue per piece. Meanwhile, the International Package segment contributed $4.37 billion, and the Supply Chain Solutions segment added $2.71 billion to the total revenue.

Earnings/Net Income
United Parcel's EPS increased by 7.7% to $1.40 in 2025 Q1, reflecting ongoing earnings growth. The company's net income rose to $1.19 billion, marking a 6.6% increase from the previous year. This sustained profitability underscores UPS's resilience. The EPS growth indicates strong performance amidst challenging economic conditions.

Price Action
The stock price of United Parcel has edged up 0.76% during the latest trading day, has edged down 0.11% during the most recent full trading week, and has tumbled 12.86% month-to-date.

Post-Earnings Price Action Review
A review of United Parcel Service (UPS) stock price following its earnings report reveals a positive correlation between the earnings metrics and stock price movement. The analysis indicates that revenue tends to influence short-term performance positively, with a 3-Day win rate of 50% and a 30-Day win rate of 55%. Similarly, net income and diluted EPS also show a propensity for positive returns post-earnings, each with a 10-Day win rate of 45% and a 30-Day win rate of 55%. Overall, these metrics suggest that UPS stock typically sees favorable movement shortly after earnings releases. Investors might consider these metrics when assessing investment decisions during this period. However, it's crucial to acknowledge that historical performance doesn't guarantee future outcomes, necessitating consideration of other influential factors.

CEO Commentary
"I want to thank all UPSers for their hard work and efforts in this very dynamic environment," said Carol Tomé, UPS Chief Executive Officer. The company reported consolidated revenues of $21.5 billion, a slight decrease from the previous year, while operating profit rose 3.3% to $1.7 billion, indicating resilience amid challenges. Tomé emphasized leveraging UPS's integrated network and trade expertise to assist customers adapting to a changing trade environment. She expressed optimism that the actions taken to reconfigure the network and reduce costs will position UPS as a stronger, more nimble entity despite the uncertain macroeconomic landscape.

Guidance
Given the current macro-economic uncertainty, the company is not providing any updates to its previously issued consolidated full-year outlook. Expectations for its second-quarter financial performance will be provided during its first-quarter 2025 earnings conference call, signaling a cautious approach as UPS navigates the evolving market conditions.

Additional News
In response to a challenging economic environment influenced by U.S. President Donald Trump's tariffs, UPS announced plans to cut 20,000 jobs and close 73 facilities by the end of June 2025. This move is part of a larger strategy to reduce costs and reconfigure its network amidst slowing trade and a significant reduction in Amazon shipments. The job cuts and facility closures are expected to save UPS approximately $3.5 billion this year. UPS continues to assess its operations and may identify additional buildings for closure as part of its ongoing network review. These actions are designed to position UPS as a more efficient and agile company in the face of global trade uncertainties.