UPS beats by $0.49, beats on revs; guides FY22 revs above consensus
- Reports Q4 (Dec) earnings of $3.59 per share, excluding non-recurring items, $0.49 better than the S&P Capital IQ Consensus of $3.10; revenues rose 11.3% year/year to $27.71 bln vs the $27.07 bln S&P Capital IQ Consensus.
- Co issues upside guidance for FY22, sees FY22 revs of $102 bln vs. $99.92 bln S&P Capital IQ Consensus.
- The company provides guidance on an adjusted (non-GAAP) basis because it is not possible to predict or provide a reconciliation reflecting the impact of future pension mark-to-market adjustments or other unanticipated events, which would be included in reported (GAAP) results and could be material. UPS expects to deliver its 2023 consolidated revenue and operating margin targets one year early. For the full year 2022, the company expects consolidated revenue of about $102 billion, an adjusted operating margin of approximately 13.7% and adjusted return on invested capital to be above 30%. The company is planning capital expenditures to be 5.4% of revenue or approximately $5.5 billion, dividend payments to be around $5.2 billion, subject to Board approval, and share repurchases to be at least $1.0 billion. The effective tax rate is expected to be around 23.0%.
- UPS Board of Directors declares quarterly dividend of $1.52, a per-share increase of 49% over the prior year