Core Viewpoint - United Parcel Service (UPS) shares dropped over 17% following weak revenue guidance and plans to significantly reduce deliveries for Amazon, its largest customer, by more than 50% by the second half of 2026 [1][2] Group 1: Financial Performance - UPS reported a weak revenue outlook for the year, prompting a significant decline in its stock price [1] - The company anticipates savings of approximately $1 billion through the reconfiguration of its U.S. network and multi-year efficiency initiatives [1] Group 2: Customer Relationship - Amazon is identified as UPS' largest customer, but it is not the most profitable one, as its margin negatively impacts UPS' U.S. domestic business [2] - UPS is implementing operational changes to enhance profitability and agility, aiming to focus on more lucrative market segments [2]

Core Insights - United Parcel Service (UPS) reported a non-GAAP adjusted EPS of $2.75, exceeding the consensus estimate of $2.53, reflecting an 11.3% year-over-year increase [2][3] - Revenue for UPS was $25.3 billion, slightly below the expected $25.41 billion, marking a modest 1.5% increase compared to the previous year [2][3] Financial Performance - The operating margin (non-GAAP adjusted) improved to 12.3%, up from 11.2% in Q4 2023, indicating enhanced operational efficiency [3] - Net income (non-GAAP adjusted) reached $2.36 billion, an increase of 11.3% from $2.12 billion in the same quarter last year [3] Business Segments - The U.S. Domestic Segment generated revenue of $17.31 billion, a 2.2% increase, with an operating profit margin of 9.7% [6] - The International Segment saw revenue rise by 6.9% to $4.92 billion, supported by an 8.8% increase in average daily volume and an operating margin of 20.7% [6] - The Supply Chain Solutions Segment experienced a revenue decline of 9.1% to $3.07 billion, attributed to the sale of Coyote Logistics, although operating profit improved [7] Strategic Focus - UPS is concentrating on technology integration and network efficiency to achieve significant cost savings and enhance profitability [5] - The company is investing in technology-driven solutions, particularly in healthcare logistics and e-commerce, to strengthen its market position [5] Future Outlook - Management forecasts revenue of approximately $89 billion for fiscal year 2025, with an expected operating margin of around 10.8% [9] - UPS plans to invest $3.5 billion in key areas such as technology and operational capacity to ensure sustained growth [9] - The company intends to return $5.5 billion to shareholders, aiming to enhance investor value [10]

Group 1 - The article discusses the coverage initiation on United Parcel Service, Inc. (NYSE: UPS) with a hold rating, indicating that the company has too much to prove to be considered a buy [1] - The author emphasizes a focus on portfolio management, income investing, and alternatives, reflecting a broader investment philosophy [1] Group 2 - There is no additional relevant content regarding the company or industry in the provided documents [2]

Core Insights - United Parcel Service Inc (UPS) is experiencing a significant decline, down 15.4% to $113.16, following a fourth-quarter earnings beat but a revenue miss and a negative full-year forecast [1] - UPS has entered an agreement with Amazon.com to reduce deliveries, which has surprised several analysts [1] Group 1 - UPS is facing its largest single-day percentage drop in history, falling to more than four-year lows, and has a 30% year-over-year deficit [2] - The stock is currently on the short sell restricted (SSR) list due to increased volatility [2] - In the options market, there has been a notable increase in activity with 52,000 calls and 38,000 puts exchanged, representing ten times UPS' average daily options volume [2] Group 2 - Over the past 10 weeks, call options have been more popular than usual, with a 50-day call/put volume ratio of 2.88, ranking higher than 90% of readings from the past year [3]

Core Insights - United Parcel Service (UPS) reported revenue of $25.3 billion for the quarter ended December 2024, reflecting a 1.5% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $2.75, up from $2.47 in the same quarter last year, indicating a positive trend in profitability [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $25.33 billion, resulting in a revenue surprise of -0.13%, while the EPS exceeded expectations by 9.13% [1] Financial Performance Metrics - Average revenue per piece for International Package was $20.60, lower than the estimated $21.01 [4] - Average daily package volume for International Package - Export was 1.98 million, surpassing the estimate of 1.86 million [4] - Average daily package volume for International Package - Domestic was 1.75 million, slightly above the estimate of 1.72 million [4] - Revenue from Supply Chain Solutions was $3.07 billion, below the estimated $3.31 billion, representing a year-over-year decline of 9.7% [4] - Revenue from International Package reached $4.92 billion, exceeding the estimate of $4.81 billion, with a year-over-year increase of 6.9% [4] - Revenue from U.S. Domestic Package was $17.31 billion, above the estimate of $17.23 billion, reflecting a 2.4% year-over-year growth [4] - Revenue from U.S. Domestic Package - Ground was $12.94 billion, slightly below the estimate of $12.99 billion, with a year-over-year increase of 2.2% [4] - Revenue from U.S. Domestic Package - Next Day Air was $2.68 billion, below the estimate of $2.71 billion, showing a 1.1% year-over-year increase [4] - Revenue from International Package - Domestic was $887 million, slightly above the estimate of $880.71 million, with a year-over-year change of 5% [4] - Revenue from International Package - Export was $3.87 billion, exceeding the estimate of $3.78 billion, with a year-over-year increase of 7.1% [4] Stock Performance - UPS shares have returned +6.1% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1: United Parcel Service (UPS) - UPS reported quarterly earnings of $2.75 per share, exceeding the analyst consensus estimate of $2.53 per share [2] - The company reported quarterly sales of $25.300 billion, which fell short of the analyst consensus estimate of $25.419 billion [2] - UPS shares dipped 13.7% to $115.50 in pre-market trading following the earnings report [2] Group 2: Other Companies - Whirlpool Corporation shares fell 10.5% to $115.96 after reporting worse-than-expected fourth-quarter revenue and issuing FY25 guidance below estimates [3] - Cigna Group shares dropped 10.4% to $271.74 after reporting disappointing fourth-quarter EPS and providing FY25 EPS guidance with a low point below estimates [3] - ServiceNow, Inc. shares decreased by 9.6% to $1,033.40 after reporting worse-than-expected fourth-quarter revenue results [3] - STMicroelectronics N.V. shares dipped 8.1% to $22.74 after reporting worse-than-expected fourth-quarter EPS and issuing first-quarter net revenue guidance below estimates [3] - Robert Half Inc. shares fell 5.6% to $65.30 following fourth-quarter reported financial results [3] - Microsoft Corporation shares decreased by 4.2% to $423.72 despite reporting second-quarter GAAP earnings of $3.23 per share, beating the $3.11 consensus estimate, and quarterly revenue of $69.6 billion, exceeding the $68.78 billion analyst consensus estimate [3] - Microsoft's Intelligent Cloud segment revenue was $25.5 billion, reflecting a 19% increase [3]

January 30, 2025 © 2025 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 4Q24 Earnings Call PJ GUIDO Investor Relations Officer © 2025 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 2 UPS Speakers CAROL B. TOMÉ Chief Executive Officer BRIAN DYKES Chief Financial Off ...

United Parcel Service (UPS) came out with quarterly earnings of $2.75 per share, beating the Zacks Consensus Estimate of $2.52 per share. This compares to earnings of $2.47 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.13%. A quarter ago, it was expected that this package delivery service would post earnings of $1.65 per share when it actually produced earnings of $1.76, delivering a surprise of 6.67%.Over the last four qu ...

Shares of United Parcel Service (UPS) sank 10% in premarket trading Thursday after the shipping giant reported worse-than-expected fourth-quarter results. The company reported net income of $1.72 billion, or $2.01 per share, on $25.3 billion in revenue. Analysts had expected profit of $2.14 billion, or $2.51 per share, on revenue of $25.35 billion, per Visible Alpha. After stripping out $639 million in charges that were mostly related to pensions, UPS reported adjusted earnings per share (EPS) of $2.75, ab ...

Exhibit 99.2 United Parcel Service, Inc. Selected Financial Data - Fourth Quarter (unaudited) | | | | Three Months Ended | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | December 31 | | | | | | | | 2024 | | 2023 | | Change | % Change | | (amounts in millions, except per share data) | | | | | | | | | Statement of Income Data: Revenue: | | | | | | | | | U.S. Domestic Package | $ | 17,312 | $ | 16,939 | $ | 373 | 2.2 % | | International Package | | 4,923 | | 4,606 | | 317 | 6.9 % | | Supply ...