UPS beats by $0.22, reports revs in-line; guides FY25 revs below consensus
- Reports Q4 (Dec) earnings of $2.75 per share, excluding non-recurring items, $0.22 better than the FactSet Consensus of $2.53; revenues rose 1.5% year/year to $25.3 bln vs the $25.41 bln FactSet Consensus.
- Consolidated Operating Margin of 11.6%; Non-GAAP Adjusted Consolidated Operating Margin of 12.3%.
- Co issues downside guidance for FY25, sees FY25 revs of ~$89 bln vs. $95.03 bln FactSet Consensus.
- Operating margin to be approximately 10.8%.
- Today the company announces the following set of strategic actions:
- First, it has reached an agreement in principle with its largest customer to lower its volume by more than 50% by the second half of 2026;
- Second, effective January 1, 2025, the company has insourced 100% of its UPS SurePost product;
- And third, in connection with these efforts, the company is reconfiguring its U.S. network, and launching multi-year "efficiency reimagined" initiatives to drive approximately $1.0 billion in savings through an end-to-end process redesign.
- The company is planning capital expenditures of about $3.5 billion, dividend payments of around $5.5 billion, subject to board approval, and share repurchases of around $1.0 billion for 2025.