UPS’ Q4 2021 earnings top consensus estimates

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UPS (NYSE: UPS) has announced its Q4 2021 consolidated revenue of $27.8 billion, representing a YoY increase of 11.5%. The company beat consensus revenue estimates of $27.01 billion. Consolidated operating profit during the quarter was $3.9 billion, representing a YoY increase of 91% and up 37.7% on an adjusted basis.

Diluted EPS grew 35% YoY

Q4 2021 diluted earnings per share were $3.52, a YoY increase of 35%, which was better than the EPS of $3.09 that analysts had predicted. GAAP results during the quarter included a $59 million or $0.07 per diluted share charge that comprised a non-cash, after-tax mark-to-market pension fee of $14 million-plus after-tax transformation and another cost of $5 million. CEO Carol Tome stated:

I want to thank all UPSers for their outstanding efforts throughout the holiday season and for once again delivering industry-leading service to our customers. The execution of our strategy is delivering positive financial results and driving strong momentum as we move into 2022.

The US domestic segment reported revenue of around $17.7 billion, representing YoY growth of 12.4%, driven by a 10.5% growth in revenue per piece. The operating margin was $2.103 billion, up 11.9% YoY, while adjusted operating profit was $2.165 billion, a 12.2% increase.

International operations generated revenue of $5.4 billion, a 13.1% YoY growth driven by 16.4% growth in revenue per piece. The operating margin was 24.5%, while the adjusted operating margin for the international segment was 24.7%. Supply chain solutions generated $4.677 billion, a 6.7% increase driven by Forwarding and Logistics operations that grew 28%.

Full-year consolidated revenue of $97.3 million

For the full year, consolidated revenue was up 15% to $97.3 billion, operating profit was $12.8 billion, and adjusted operating profit increased 50.8% to $13.1 billion. The company reported diluted EPS of $14.68, with adjusted diluted EPS being $12.13.

UPS has confirmed that it will pay a dividend of $1.52 per share on fiscal Q1 2022 on all its outstanding Class A and Class B shares. Dividends will be payable to shareholders that will be on record from February 22, 2022, to March 10, 2022.

For fiscal 2022 the company expects revenue of $102 billion compared to estimates of $100 billion. In addition, the company expects to deliver 2023 consolidated operating margin and revenue targets one year early.

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