UPS Q2 Adj. EPS Misses View, Cuts FY24 Revenue Forecast; Stock Down In Pre-market

(RTTNews) - United Parcel Service Inc. (UPS) shares were losing more than 7 percent in the pre-market activity on the NYSE after the logistics major on Tuesday reported second-quarter adjusted earnings below market and trimmed fiscal 2024 revenue forecast.

Carol Tome, UPS chief executive officer, said, "This quarter was a significant turning point for our company as we returned to volume growth in the U.S., the first time in nine quarters. As expected, our operating profit declined in the first half of 2024 from what we reported last year. Going forward we expect to return to operating profit growth."

For the full year 2024, the company now expects consolidated revenue to be approximately $93.0 billion, compared to be previously expected revenue in a range of $92.0 billion to $94.5 billion.

Analysts on average expect the company to report revenues of $92.79 billion, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Consolidated adjusted operating margin is now expected to be approximately 9.4 percent, down from previous estimate of around 10 percent to 10.6 percent.

Further, UPS now expects capital expenditures of around $4.0 billion, while earlier view was for around $4.5 billion for the year.

UPS also said it targeting around $500 million in share repurchases.

The company said it is restarting share repurchase program, targeting $1 billion annually.

In its second quarter, UPS reported net income of $1.41 billion or $1.65 per share.

Adjusted earnings were $1.53 billion or $1.79 per share, compared to $2.54 per share a year ago.

The Street was looking for earnings of $1.99 per share for the quarter.

Cconsolidated revenues were $21.8 billion, a 1.1 percent decrease from $22.1 billion a year earlier, while analysts were looking for revenues of $22.18 billion.

In pre-market activity on the NYSE, UPS shares were losing around 7.3 percent to trade at $134.60.

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