Key Takeaways:
- EPS missed by 10.1%
- Revenue missed by 2.0%
- Total revenue: $21.8B, down 1.2% YoY, flat QoQ
- Stock price down nearly 13% after earnings call
- US domestic volume returned to positive growth, up 0.7% YoY
- International segment saw volume growth in 11 of top 20 export countries
- Company updated full-year guidance: revenue ~$93B, operating margin ~9.4%
- Fit-to-serve initiative on track to deliver ~$1B in savings by year-end
- UPS plans to repurchase ~$500M in shares in 2024
Forward-Looking Statements and Insights:
Carol Tome, CEO: “We expect to exit the final month of 2024 with a US operating margin of 10%, which creates a solid footing as we drive the US business to a longer-term operating margin target of 12%.”
Brian Dykes, CFO: “We do expect our RPP growth to moderate in the back half. And actually, as we move from kind of the negative 2.6% that we are at to almost approach breakeven as we get towards the end of the year.”
