UPS Reports Q4 Results Amid Layoffs Announcement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
0mins
Source: Fool
- Financial Performance: UPS reported nearly $24.5 billion in Q4 revenue, a 3% year-over-year decline, while operating profit fell nearly 7% to $2.9 billion, yet both figures exceeded analyst expectations, demonstrating resilience in a challenging environment.
- Domestic vs. International: Despite a 3% drop in domestic revenue due to lower shipment volumes, international operations saw revenue growth driven by a more than 7% increase in revenue per item shipped, indicating the company's adaptability in global markets.
- Layoff Plan: UPS plans to reduce its workforce by up to 30,000 employees in 2025, with the CFO stating this will be achieved through attrition and a second voluntary separation program for full-time drivers, aimed at optimizing human resources in response to market challenges.
- Dividend Maintenance: The company declared a quarterly dividend of $1.64 per share, matching the previous four distributions and yielding 6.1%, reflecting UPS's commitment to providing stable returns to shareholders despite current economic pressures.
Analyst Views on UPS
Wall Street analysts forecast UPS stock price to rise 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: 106.970
Low
80.00
Averages
107.06
High
126.00
Current: 106.970
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.
