United Parcel Service, Inc. (UPS) reported third-quarter 2024 earnings of $1.76 per share, which beat the Zacks Consensus Estimate of $1.65 and improved 12.1% year over year.
UPS’s bullish margin view looks encouraging. For 2024, UPS now expects consolidated adjusted operating margin to be around 9.6% compared with the prior expected 9.4%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Other Aspects of Q3 Earnings Report
Revenues of $22.25 billion fell short of the Zacks Consensus Estimate of $22.26 billion but increased 5.6% year over year.
For 2024, UPS now anticipates revenues to be around $91 billion (prior view: $93 billion). The Zacks Consensus Estimate is currently pegged at $91.98 billion.
U.S. Domestic Package revenues of$14.45 billion grew 5.8% year over year, owing to a 6.5% increase in average daily volume.The actual segmental sales figure was lower than our projections of $14.85 billion. Segmental operating profit (adjusted) grew 46.5% year over year to $974 million. The adjusted operating margin for the segment was 6.7%.
Revenues in the International Package division summed $4.41 billion, which increased 3.4%year over yearowing to a 2.5% increase in revenue per piece. The actual segmental sales figure was higher than our projections of $4.35 billion.Segmental operating profit (adjusted) totaled $792 million, up 17.3% year over year. The adjusted operating margin for the segment was 18%.
Supply Chain Solutions revenues of $3.38 billion increased 8% year over year due to growth in air and ocean forwarding and the continued onboarding of USPS air cargo. The actual segmental sales figure was lower than our projections of $3.39 billion.
Operating profit (on an adjusted basis) fell 21% to $217 million. The adjusted operating margin for the segment was 6.4%.
The overall adjusted operating profit grew 22.8% year over year. The overall adjusted operating margin was 8.9%.
For 2024, UPS continues to expect capital expenditures to be around $4 billion.
United Parcel Service, Inc. Price, Consensus and EPS Surprise
United Parcel Service, Inc. price-consensus-eps-surprise-chart | United Parcel Service, Inc. Quote
UPS’ Zacks Rank and Price Performance
Currently, UPS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UPS shares have gained 12.1% in the past three months, outperforming its industry and the S&P 500, of which the company is a key member.
Three-Month Price Comparison
Image Source: Zacks Investment Research
Performances of Other Transportation Companies
Delta Air Lines (DAL) reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis, mainly due to high labor costs.
Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year.
J.B. Hunt Transport Services, Inc. (JBHT) third-quarter 2024 earnings of $1.49 per share outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.
Total operating revenues of $3.07 billionsurpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. The downfall was owing to a 5% and 6% decrease in gross revenue per load in Intermodal (JBI) and Truckload (JBT), respectively, a decline in load volume of 10% and 6% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services (DCS), respectively, and 6% fewer stops in Final Mile Services (FMS). These were partially offset by JBI load growth of 5%, which included growth in both the transcontinental and eastern networks, and a 3% increase in revenue per load in ICS. Total operating revenue, excluding fuel surcharge revenue, decreased less than 1% from the year-ago reported quarter.
United Airlines Holdings, Inc. (UAL) reported third-quarter 2024 EPS (excluding 43 cents from non-recurring items) of $3.33, which surpassed the Zacks Consensus Estimate of $3.10. Earnings decreased 8.8% on a year-over-year basis.
Operating revenues of $14.84 billion beat the Zacks Consensus Estimate of $14.76 billion. The top line increased 2.5% year over year due to upbeat air-travel demand. This was driven by a 1.6% rise in passenger revenues (which accounted for 91.3% of the top line) to $13.56 billion. Almost 45,559 passengers traveled on UAL flights in the third quarter, up 2.7% year over year.
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Today, See These 5 Potential Home Runs >>Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
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