UPS Reports 10.9% Decrease in Revenue for Q2 of 2023 Fiscal Year
August 17, 2023
🌥️Earnings Overview
For the quarter ending June 30, 2023, UNITED PARCEL SERVICE ($NYSE:UPS) reported a total revenue of USD 22.1 billion, a 10.9% drop from the same quarter of the preceding year. Net income for the quarter was USD 2.1 billion, a decline of 27.0% from the same period in the year prior.
Analysis
GoodWhale conducted an analysis of the financials UNITED PARCEL SERVICE, which was classified as ‘rhino’ – a company that has achieved moderate revenue or earnings growth. This type of company often appeals to investors who are looking for stability and lower risk. UNITED PARCEL SERVICE is strong in dividend, profitability, and medium in asset and growth. According to their star chart, UNITED PARCEL SERVICE has a health score of 8/10, suggesting that the company is capable of paying off debt and funding future operations. In addition to this, their moderate growth rate indicates that they may be able to generate steady, consistent returns over time. Therefore, these features make UNITED PARCEL SERVICE an attractive option for those looking for stability and a lower risk profile in their investments. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for UPS. More…
| Total Revenues | Net Income | Net Margin |
| 96.17k | 10.01k | 8.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for UPS. More…
| Operations | Investing | Financing |
| 11.4k | -8.83k | -9.48k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for UPS. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 70.35k | 50.31k | 23.31 |
Key Ratios Snapshot
Some of the financial key ratios for UPS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.5% | 15.5% | 14.3% |
| FCF Margin | ROE | ROA |
| 6.5% | 42.8% | 12.2% |
Peers
There is intense competition between United Parcel Service Inc and its competitors: Deutsche Post AG, Expeditors International of Washington Inc, Kuehne + Nagel International AG. All these companies are striving to get a larger share of the global market for logistics and transportation services.
– Deutsche Post AG ($OTCPK:DPSTF)
Deutsche Post AG, together with its subsidiaries, provides postal and logistics services in Germany and internationally. The company operates through three segments: Post, Express, and Parcel (PEPS); eCommerce Parcel; and Supply Chain. The Post segment offers various postal services, including the delivery of letters and parcels, as well as direct marketing products. The Express segment provides international express mail, national express mail, and express courier services. The Parcel (PEPS) segment offers parcel services. The eCommerce Parcel segment engages in the provision of parcel services for business customers and private individuals. The Supply Chain segment offers a range of logistics solutions, including air and ocean freight, warehousing, and contract logistics. Deutsche Post AG was founded in 1995 and is headquartered in Bonn, Germany.
– Expeditors International of Washington Inc ($NASDAQ:EXPD)
Expeditors International of Washington Inc is a Fortune 500 company that provides global logistics services. It is headquartered in Seattle, Washington and has over 300 offices in 70 countries. The company is a leading provider of transportation and logistics services, and its core business is facilitating the movement of goods and people around the world. Expeditors has a diversified business model that includes airfreight, ocean freight, customs brokerage, and warehousing and distribution. The company’s global logistics network includes a comprehensive range of transportation and distribution services that allow it to provide end-to-end solutions for its customers. Expeditors is a publicly traded company listed on the NASDAQ stock exchange under the ticker symbol EXPD.
– Kuehne + Nagel International AG ($OTCPK:KHNGF)
Kuehne + Nagel International AG, together with its subsidiaries, provides logistics and transportation services worldwide. The company operates through four segments: Sea Logistics, Air Logistics, Land Logistics, and Overland Logistics. It offers transport and storage solutions for various goods, including chemicals and oil, fashion, food, and beverages, general cargo, healthcare, high-tech products, automotive parts, and others. The company was founded in 1890 and is headquartered in Schindellegi, Switzerland.
Summary
Investors should be cautious when looking at UNITED PARCEL SERVICE’s financial performance for the second quarter of 2023, with a 10.9% drop in total revenue compared to the same period in the previous year and a 27.0% decrease in net income. This could indicate that the company is struggling to remain competitive in a highly competitive sector. Investors should keep an eye on the company’s performance over the coming quarters to assess whether this is a temporary drop or an indication of more serious issues.
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