UPS Q4 Earnings Beat Expectations with Strong Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Earnings Beat: UPS reported a Q4 non-GAAP EPS of $2.38, exceeding expectations by $0.18, indicating improvements in cost control and operational efficiency, which bolsters investor confidence.
- Revenue Decline: The company's Q4 revenue of $24.5 billion, down 3.2% year-over-year, still surpassed market expectations by $490 million, demonstrating relative stability in a challenging market environment.
- Positive Outlook: UPS anticipates approximately $89.7 billion in revenue for 2026, with a non-GAAP adjusted operating margin of about 9.6%, reflecting confidence in future growth and effective strategic planning.
- Capital Expenditure and Dividend Plans: The company plans capital expenditures of around $3.0 billion and dividend payments of approximately $5.4 billion, subject to board approval, showcasing UPS's strategy to balance ongoing investments with shareholder returns.
Analyst Views on UPS
Wall Street analysts forecast UPS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for UPS is 107.06 USD with a low forecast of 80.00 USD and a high forecast of 126.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
9 Buy
9 Hold
1 Sell
Moderate Buy
Current: 107.980
Low
80.00
Averages
107.06
High
126.00
Current: 107.980
Low
80.00
Averages
107.06
High
126.00
About UPS
United Parcel Service, Inc. provides a range of integrated logistics solutions for customers in more than 200 countries and territories. Its U.S. Domestic Package segment offers a range of United States domestic air and ground package transportation services. Its air portfolio offers time-definite, same-day, next-day, two-day and three-day delivery alternatives as well as air cargo services. Its ground network enables customers to ship using its day-definite ground service. UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments. Its International Package segment consists of small package operations in Europe, Indian sub-continent, Middle East and Africa, Canada and Latin America and Asia. It offers a selection of guaranteed day- and time-definite international shipping services. Its supply chain solutions consist of forwarding, logistics, customized third-party logistics and specialized cold chain transportation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
