UPS Reports Q1 2024 Earnings Decline, Secures $1.7B USPS Contract and Aims for $20B Healthcare Revenue

Atlanta, Georgia United States of America
Consolidated operating profit was down 36.5% to $1.6 billion and adjusted operating profit was down 31.5%.
Diluted earnings per share were $1.30 with adjusted diluted earnings per share at $1.43, a 35% decrease from the same period in 2023.
UPS plans to double its healthcare-related revenue to $20 billion by 2026.
UPS reported a 5.3% decrease in consolidated revenues to $21.7 billion for Q1 2024.
UPS reported a total charge of $110 million for Q1 2024 due to transformation and other charges and a non-cash impairment charge.
UPS won a replacement contract worth over $1.7 billion with the US Postal Service, making it the largest air cargo service provider.
UPS Reports Q1 2024 Earnings Decline, Secures $1.7B USPS Contract and Aims for $20B Healthcare Revenue

In a recent financial report, UPS announced its first-quarter 2024 earnings, revealing a decrease in revenues and operating profit compared to the same period last year. The company reported consolidated revenues of $21.7 billion, a 5.3% drop from the previous year's first quarter. Consolidated operating profit was recorded at $1.6 billion, down 36.5% from Q1 2023 and down 31.5% on an adjusted basis.

Diluted earnings per share for the quarter were $1.30, with adjusted diluted earnings per share amounting to $1.43, which was 35.0% below the same period in 2023. The company reported a total charge of $110 million, or $0.13 per diluted share, for Q1 2024 due to transformation and other charges and a non-cash impairment charge.

Despite the decline in revenues and operating profit, UPS remains optimistic about volume and revenue growth returning in the future. Carol Tom, UPS CEO, stated that the financial performance in Q1 2024 was in line with expectations.

In addition to its financial report, UPS also announced a significant contract with the US Postal Service. The company won a replacement contract worth over $1.7 billion, making it the largest air cargo service provider for the US Postal Service and replacing FedEx. Furthermore, UPS plans to double its healthcare-related revenue to $20 billion by 2026.

Despite the decline in revenues and operating profit, UPS remains optimistic about volume and revenue growth returning in the future. Carol Tom, UPS CEO, stated that the financial performance in Q1 2024 was in line with expectations.

In addition to its financial report, UPS also announced a significant contract with the US Postal Service. The company won a replacement contract worth over $1.7 billion, making it the largest air cargo service provider for the US Postal Service and replacing FedEx. Furthermore, UPS plans to double its healthcare-related revenue to $20 billion by 2026.


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Confidence

90%

Doubts
  • Are there any potential risks to UPS's financial performance that were not disclosed in the report?
  • Is the reported decrease in revenues and operating profit a trend or an anomaly?

Sources

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

UPS Releases 1Q 2024 Earnings

Investors.ups.com Tuesday, 23 April 2024 16:05
  • Unique Points
    • UPS reported consolidated revenues of $21.7 billion for 1Q 2024, a decrease of 5.3% compared to the same quarter last year.
    • Consolidated operating profit was $1.6 billion, down 36.5% compared to Q1 2023 and down 31.5% on an adjusted basis.
    • Diluted EPS for the quarter were $1.30; adjusted diluted EPS were $1.43, which was 35.0% below the same period in 2023.
    • UPS reported a total charge of $110 million, or $0.13 per diluted share, for Q1 2024 due to transformation and other charges and a non-cash impairment charge.
    • Carol Tom, UPS CEO, stated that the financial performance in Q1 2024 was in line with expectations and volume and revenue growth is expected to return.
    • U.S. Domestic Segment revenue decreased 5.0% to $14,234 million and operating margin was 5.8%; adjusted operating margin was 5.9%.
    • International Segment revenue decreased 6.3% to $4,256 million and operating margin was 15.4%; adjusted operating margin was 16.0%.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

UPS profit tops expectations as cost-cuts deliver margin

Yahoo Finance Unknown Reuters Tuesday, 23 April 2024 16:06
  • Unique Points
    • UPS grappling with higher labor costs tied to new Teamsters contract
    • UPS plans to double healthcare-related revenue to $20 billion by 2026
    • UPS won significant contract with US Postal Service, replacing FedEx as largest air cargo service provider worth over $1.7 billion
  • Accuracy
    • UPS reported better-than-expected quarterly profit of $1.43 per share
    • First-quarter revenue was $21.7 billion, missing analysts’ target of $21.9 billion
    • Average daily volumes in U.S. business declined by 3.2% and international segment declined by 5.8%
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains some instances of appeals to authority and inflammatory rhetoric, but no formal or informal fallacies are present. The author reports on UPS's financial performance and quotes analysts' expectations and opinions. No dichotomous depictions are made.
    • ][Reporting by Ananta Agarwal in Bengaluru and Lisa Baertlein in Los Angeles][/]; Editing by Devika Syamnath and Bernadette Baum[
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

93%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Slowing package delivery numbers highlights middling demand

FOREXLive Adam Button Tuesday, 23 April 2024 16:06
  • Unique Points
    • Revenues were $21.7 billion, below the expected $21.9 billion and last year’s $22.9 billion.
    • The company remained optimistic on the second half of the year.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (80%)
    The author makes editorializing statements by interpreting UPS's reported decline in package delivery volumes as a 'read-through' on the strength of the economy. He also uses the term 'middling demand' which is an opinion not based on facts provided in the article.
    • The company reported a 3.2% decline in average daily volumes in its domestic segment and a 5.8% drop in its international segment in the quarter.
    • The author's interpretation of UPS's reported package delivery numbers as a 'read-through' on the strength of the economy.
    • However the company said volumes “showed improvement through the quarter”.
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

UPS releases 1Q 2024 earnings

about.ups.com Tuesday, 23 April 2024 16:07
  • Unique Points
    • UPS reported a total charge of $110 million, or $0.13 per diluted share, for Q1 2024 due to transformation and other charges and a non-cash impairment charge.
    • Carol Tom, UPS CEO, stated that the financial performance in Q1 2024 was in line with expectations.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains some instances of inflammatory rhetoric and an appeal to authority, but no formal or informal fallacies were found. The author's statements about the financial performance being 'in line with expectations' and 'looking ahead to returning to volume and revenue growth' are subjective opinions that do not constitute logical fallacies.
    • ]I want to thank all UPSers for their hard work and efforts[
    • Operating margin was 15.4%; adjusted operating margin was 16.0%
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication