We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
UPS Q3 Earnings Surpass Estimates, 2024 Margin View Up
Read MoreHide Full Article
United Parcel Service, Inc. (UPS - Free Report) reported third-quarter 2024 earnings of $1.76 per share, which beat the Zacks Consensus Estimate of $1.65 and improved 12.1% year over year.
UPS’s bullish margin view looks encouraging. For 2024, UPS now expects consolidated adjusted operating margin to be around 9.6% compared with the prior expected 9.4%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Other Aspects of Q3 Earnings Report
Revenues of $22.25 billion fell short of the Zacks Consensus Estimate of $22.26 billion but increased 5.6% year over year.
For 2024, UPS now anticipates revenues to be around $91 billion (prior view: $93 billion). The Zacks Consensus Estimate is currently pegged at $91.98 billion.
U.S. Domestic Package revenues of$14.45 billion grew 5.8% year over year, owing to a 6.5% increase in average daily volume.The actual segmental sales figure was lower than our projections of $14.85 billion. Segmental operating profit (adjusted) grew 46.5% year over year to $974 million. The adjusted operating margin for the segment was 6.7%.
Revenues in the International Package division summed $4.41 billion, which increased 3.4%year over yearowing to a 2.5% increase in revenue per piece. The actual segmental sales figure was higher than our projections of $4.35 billion.Segmental operating profit (adjusted) totaled $792 million, up 17.3% year over year. The adjusted operating margin for the segment was 18%.
Supply Chain Solutions revenues of $3.38 billion increased 8% year over year due to growth in air and ocean forwarding and the continued onboarding of USPS air cargo. The actual segmental sales figure was lower than our projections of $3.39 billion.
Operating profit (on an adjusted basis) fell 21% to $217 million. The adjusted operating margin for the segment was 6.4%.
The overall adjusted operating profit grew 22.8% year over year. The overall adjusted operating margin was 8.9%.
For 2024, UPS continues to expect capital expenditures to be around $4 billion.
United Parcel Service, Inc. Price, Consensus and EPS Surprise
UPS shares have gained 12.1% in the past three months, outperforming its industry and the S&P 500, of which the company is a key member.
Three-Month Price Comparison
Image Source: Zacks Investment Research
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis, mainly due to high labor costs.
Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) third-quarter 2024 earnings of $1.49 per share outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.
Total operating revenues of $3.07 billionsurpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. The downfall was owing to a 5% and 6% decrease in gross revenue per load in Intermodal (JBI) and Truckload (JBT), respectively, a decline in load volume of 10% and 6% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services (DCS), respectively, and 6% fewer stops in Final Mile Services (FMS). These were partially offset by JBI load growth of 5%, which included growth in both the transcontinental and eastern networks, and a 3% increase in revenue per load in ICS. Total operating revenue, excluding fuel surcharge revenue, decreased less than 1% from the year-ago reported quarter.
United Airlines Holdings, Inc. (UAL - Free Report) reported third-quarter 2024 EPS (excluding 43 cents from non-recurring items) of $3.33, which surpassed the Zacks Consensus Estimate of $3.10. Earnings decreased 8.8% on a year-over-year basis.
Operating revenues of $14.84 billion beat the Zacks Consensus Estimate of $14.76 billion. The top line increased 2.5% year over year due to upbeat air-travel demand. This was driven by a 1.6% rise in passenger revenues (which accounted for 91.3% of the top line) to $13.56 billion. Almost 45,559 passengers traveled on UAL flights in the third quarter, up 2.7% year over year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
UPS Q3 Earnings Surpass Estimates, 2024 Margin View Up
United Parcel Service, Inc. (UPS - Free Report) reported third-quarter 2024 earnings of $1.76 per share, which beat the Zacks Consensus Estimate of $1.65 and improved 12.1% year over year.
UPS’s bullish margin view looks encouraging. For 2024, UPS now expects consolidated adjusted operating margin to be around 9.6% compared with the prior expected 9.4%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Other Aspects of Q3 Earnings Report
Revenues of $22.25 billion fell short of the Zacks Consensus Estimate of $22.26 billion but increased 5.6% year over year.
For 2024, UPS now anticipates revenues to be around $91 billion (prior view: $93 billion). The Zacks Consensus Estimate is currently pegged at $91.98 billion.
U.S. Domestic Package revenues of$14.45 billion grew 5.8% year over year, owing to a 6.5% increase in average daily volume.The actual segmental sales figure was lower than our projections of $14.85 billion. Segmental operating profit (adjusted) grew 46.5% year over year to $974 million. The adjusted operating margin for the segment was 6.7%.
Revenues in the International Package division summed $4.41 billion, which increased 3.4%year over yearowing to a 2.5% increase in revenue per piece. The actual segmental sales figure was higher than our projections of $4.35 billion.Segmental operating profit (adjusted) totaled $792 million, up 17.3% year over year. The adjusted operating margin for the segment was 18%.
Supply Chain Solutions revenues of $3.38 billion increased 8% year over year due to growth in air and ocean forwarding and the continued onboarding of USPS air cargo. The actual segmental sales figure was lower than our projections of $3.39 billion.
Operating profit (on an adjusted basis) fell 21% to $217 million. The adjusted operating margin for the segment was 6.4%.
The overall adjusted operating profit grew 22.8% year over year. The overall adjusted operating margin was 8.9%.
For 2024, UPS continues to expect capital expenditures to be around $4 billion.
United Parcel Service, Inc. Price, Consensus and EPS Surprise
United Parcel Service, Inc. price-consensus-eps-surprise-chart | United Parcel Service, Inc. Quote
UPS’ Zacks Rank and Price Performance
Currently, UPS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UPS shares have gained 12.1% in the past three months, outperforming its industry and the S&P 500, of which the company is a key member.
Three-Month Price Comparison
Image Source: Zacks Investment Research
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis, mainly due to high labor costs.
Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) third-quarter 2024 earnings of $1.49 per share outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.
Total operating revenues of $3.07 billionsurpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. The downfall was owing to a 5% and 6% decrease in gross revenue per load in Intermodal (JBI) and Truckload (JBT), respectively, a decline in load volume of 10% and 6% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services (DCS), respectively, and 6% fewer stops in Final Mile Services (FMS). These were partially offset by JBI load growth of 5%, which included growth in both the transcontinental and eastern networks, and a 3% increase in revenue per load in ICS. Total operating revenue, excluding fuel surcharge revenue, decreased less than 1% from the year-ago reported quarter.
United Airlines Holdings, Inc. (UAL - Free Report) reported third-quarter 2024 EPS (excluding 43 cents from non-recurring items) of $3.33, which surpassed the Zacks Consensus Estimate of $3.10. Earnings decreased 8.8% on a year-over-year basis.
Operating revenues of $14.84 billion beat the Zacks Consensus Estimate of $14.76 billion. The top line increased 2.5% year over year due to upbeat air-travel demand. This was driven by a 1.6% rise in passenger revenues (which accounted for 91.3% of the top line) to $13.56 billion. Almost 45,559 passengers traveled on UAL flights in the third quarter, up 2.7% year over year.