UPS Q2 2024 Earnings: Revenue Decline and Profit Drop Unveiled
United Parcel Service (NYSE: UPS) has disclosed its second-quarter earnings for 2024, showcasing a mixed performance. The company experienced a slight 1.1% decrease in consolidated revenues to $21.8 billion compared to the previous year’s $22.1 billion. Additionally, the operating profit plummeted by a significant 30.1% to $1.9 billion.
The U.S. Domestic Segment, a key revenue generator for UPS, witnessed a 1.9% drop in revenue to $14.1 billion and a decrease in operating profit to $989 million. On the other hand, the International Segment reported a 1.0% revenue decline to $4.37 billion, with an operating profit of $718 million.
Despite these challenges, the Supply Chain Solutions segment saw a 2.6% revenue increase to $3.3 billion, driven by growth in logistics, including healthcare. However, the operating profit in this segment also decreased from $295 million to $237 million.
When compared to market expectations, UPS failed to meet both revenue and earnings per share projections. The company reported an adjusted EPS of $1.79, missing the expected $2.00 by $0.21, and revenue fell short by approximately $370 million.
Looking ahead, UPS has revised its full-year 2024 financial guidance, aiming for a consolidated revenue of around $93.0 billion and an adjusted operating margin of approximately 9.4%. The company plans to target $500 million in share repurchases and aims to return to operating profit growth in the latter half of the year.
In conclusion, UPS faced challenges in Q2 2024, leading to a decline in revenue and operating profit. However, with strategic initiatives like restarting the share repurchase program and updated financial guidance, the company is working towards stabilizing and enhancing its financial performance in the upcoming quarters.