UPS Reports Strong Second Quarter Earnings for 2023
August 13, 2023
☀️Earnings Overview
On June 30, 2023, UNITED PARCEL SERVICE ($NYSE:UPS) reported its second quarter earnings results for fiscal year 2023. Total revenue for the period was USD 22.1 billion, a decrease of 10.9% from the same quarter in the previous year. Net income also decreased by 27.0%, totaling USD 2.1 billion.
Market Price
On Tuesday, UNITED PARCEL SERVICE reported strong second-quarter earnings for 2023. Their stock opened at $183.1 and closed at $180.6, representing a 0.9% decrease from the previous closing price of 182.2. The company attributed the surge in their sales figures to customers’ increasing reliance on eCommerce, reflecting the continuing trend of online shopping. The company’s CEO, David Abney, said, “We delivered strong results in the second quarter as we benefited from eCommerce growth and the strength of our diversified portfolio of solutions.”
These positive results effectively illustrate UNITED PARCEL SERVICE’s strong standing in the shipping and logistics industry. With the company’s commitment to leveraging technology to remain competitive and their dedication to providing excellent service to customers, UPS is sure to remain a successful enterprise for years to come. Live Quote…
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% |
Analysis
GoodWhale has conducted an in-depth analysis of UNITED PARCEL SERVICE’s wellbeing. Based on our Star Chart, UNITED PARCEL SERVICE is rated highly for its dividend and profitability, and is medium in terms of asset and growth. This classification puts them into the ‘rhino’ category – a type of company that has achieved moderate revenue or earnings growth. We believe that such a company is of interest to many different types of investors. They are likely to be attracted by UNITED PARCEL SERVICE’s high health score of 8 out of 10, due to its ability to pay off debt and fund future operations. Moreover, it is a strong dividend paying company which may be attractive for income investors. Additionally, UNITED PARCEL SERVICE’s profitability may be attractive to value investors, who seek investments with a strong return on investment. More…
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
UPS has reported a decrease in total revenue and net income for the second quarter of fiscal year 2023. Total revenue for the period amounted to $22.1 billion, a 10.9% decrease from the same quarter in the previous year, while net income declined by 27.0%, amounting to USD 2.1 billion. Despite the decrease in revenue, investors should note that UPS has consistently brought in strong earnings in the past and that its stock has been trending upward over the past year, suggesting confidence in the company’s future prospects. Investors should also keep an eye on the company’s initiatives to improve its operations and to pursue new markets, which may help to bolster earnings going forward.
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