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UPS Beats on Q1 Earnings & Revenues, Doubles Buyback Plan
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United Parcel Service (UPS - Free Report) reported first-quarter 2022 earnings (excluding 2 cents from non-recurring items) of $3.05 per share, beating the Zacks Consensus Estimate of $2.87. The bottom line jumped 10.11% year over year with strong performances across all segments.
Quarterly revenues of $24,378 million also outperformed the Zacks Consensus Estimate of $23,896 million. The top line increased 6.42% year over year, driven by favorable pricing and upbeat e-commerce demand.
Overall adjusted operating profit rose 12.1% year over year to $3,306 million in the first quarter, boosted by growth in the adjusted operating profit across all segments. In first-quarter 2022, UPS generated free cash flow of $3,915 million, compared with $3,712 million in first-quarter 2021. UPS’ capital expenditures were $548 million at the end of the same period.
Moreover, UPS’ board of directors decided to double its current-year share buyback target to $2 billion.
United Parcel Service, Inc. Price, Consensus and EPS Surprise
U.S. Domestic Package revenues increased 8% year over year to $15,124 million. Segmental operating profit (adjusted) climbed 16.5% year over year to $1,705 million in the quarter. Revenue per piece increased 9.5%. Adjusted operating margin in the March quarter was 11.3%.
Revenues at the International Package division summed $4,876 million, up 5.8% year over year. Revenue per piece increased 10.5% year over year. The segment’s performance was driven by strong growth in all regions. Segmental operating profit (adjusted) totaled $1,120 million in the reported quarter, up 2.7% year over year. Adjusted operating margin was 23%.
Supply-Chain Solutions revenues inched up 2% to $4,378 million, aided primarily by the upbeat performance of the Forwarding business. Operating profit (on an adjusted basis) rose 21.8% to $481 million in the March quarter.
2022 Outlook Intact
UPS, currently carrying a Zacks Rank #3 (Hold), still expects consolidated revenues of about $102 billion, an adjusted operating margin of approximately 13.7% and an adjusted return on invested capital to be above 30%. The Zacks Consensus Estimate for 2022 revenues is currently pegged at $102.25 billion.
J.B. Hunt reported better-than-expected first-quarter 2022 earnings numbers. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.
Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year.
CSX Corp’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.
Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year.
United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss incurred by UAL as coronavirus concerns continue to weigh on air-travel demand.
Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million.
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UPS Beats on Q1 Earnings & Revenues, Doubles Buyback Plan
United Parcel Service (UPS - Free Report) reported first-quarter 2022 earnings (excluding 2 cents from non-recurring items) of $3.05 per share, beating the Zacks Consensus Estimate of $2.87. The bottom line jumped 10.11% year over year with strong performances across all segments.
Quarterly revenues of $24,378 million also outperformed the Zacks Consensus Estimate of $23,896 million. The top line increased 6.42% year over year, driven by favorable pricing and upbeat e-commerce demand.
Overall adjusted operating profit rose 12.1% year over year to $3,306 million in the first quarter, boosted by growth in the adjusted operating profit across all segments. In first-quarter 2022, UPS generated free cash flow of $3,915 million, compared with $3,712 million in first-quarter 2021. UPS’ capital expenditures were $548 million at the end of the same period.
Moreover, UPS’ board of directors decided to double its current-year share buyback target to $2 billion.
United Parcel Service, Inc. Price, Consensus and EPS Surprise
United Parcel Service, Inc. price-consensus-eps-surprise-chart | United Parcel Service, Inc. Quote
Segmental Details for Q1
U.S. Domestic Package revenues increased 8% year over year to $15,124 million. Segmental operating profit (adjusted) climbed 16.5% year over year to $1,705 million in the quarter. Revenue per piece increased 9.5%. Adjusted operating margin in the March quarter was 11.3%.
Revenues at the International Package division summed $4,876 million, up 5.8% year over year. Revenue per piece increased 10.5% year over year. The segment’s performance was driven by strong growth in all regions. Segmental operating profit (adjusted) totaled $1,120 million in the reported quarter, up 2.7% year over year. Adjusted operating margin was 23%.
Supply-Chain Solutions revenues inched up 2% to $4,378 million, aided primarily by the upbeat performance of the Forwarding business. Operating profit (on an adjusted basis) rose 21.8% to $481 million in the March quarter.
2022 Outlook Intact
UPS, currently carrying a Zacks Rank #3 (Hold), still expects consolidated revenues of about $102 billion, an adjusted operating margin of approximately 13.7% and an adjusted return on invested capital to be above 30%. The Zacks Consensus Estimate for 2022 revenues is currently pegged at $102.25 billion.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UPS reiterates capital expenditures at 5.4% of revenues (approximately $5.5 billion). Dividends are retained $5.2 billion.
Earnings Snapshots
Within the broader Transportation sector, J.B. Hunt Transport Services (JBHT - Free Report) , CSX Corporation (CSX - Free Report) and United Airlines (UAL - Free Report) recently reported first-quarter 2022 results.
J.B. Hunt reported better-than-expected first-quarter 2022 earnings numbers. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.
Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year.
CSX Corp’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.
Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year.
United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss incurred by UAL as coronavirus concerns continue to weigh on air-travel demand.
Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million.