The company's dividend looks sustainable, provided management hits its medium-term targets.UPS' (UPS -0.28%) current forward dividend yield of around 4.4% is highly attractive for income-seeking investors, but is the payout sustainable? The company's earnings have disappointed recently, and the dividend cover looks pretty thin in 2024. Is UPS a stock for dividend hunters to buy? Here's what you need to know before buying the stock.UPS' dividendThe company's trailing-12-month dividend cost it about $5.4 bill ...

United Parcel Service (UPS) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this package delivery service have returned +0.4%, compared to the Zacks S&P 500 composite's -0.3% change. During this period, the Zacks Transportation - Air Freight and Cargo industry, which UPS falls in, has lost 3.1%. The key question now is: What could be ...

Financial Performance - Revenue for Q1 2024 was $21,706 million, a decrease of 5.3% from $22,925 million in Q1 2023[189] - Operating profit fell to $1,613 million, down 36.5% from $2,541 million in the same quarter last year[189] - Net income decreased to $1,113 million, representing a 41.3% decline compared to $1,895 million in Q1 2023[189] - Total revenue declined by 5.0% to $14,234 million from $14,987 million year-over-year[211] - Operating profit decreased by 43.7% to $825 million, with operating margin dropping to 5.8% from 9.8%[211][223] - Total operating profit decreased by $115 million, with operating margin decreasing 320 basis points to 4.1%[248] Volume and Revenue Trends - Average daily package volume decreased by 3.6% to 21,199 thousand packages, down from 21,989 thousand packages in Q1 2023[189] - Average daily package volume decreased by 3.2% to 18,075 thousand packages compared to 18,672 thousand packages in the same period last year[211] - Business-to-consumer volume declined by 1.5%, while business-to-business volume decreased by 5.5% due to challenging macroeconomic conditions[215] - International package average daily volume decreased by 5.8% to 3,124 thousand packages, with domestic volume down by 8.1%[226] - Domestic volume declined in the quarter, with the largest declines in Germany, Canada, and the United Kingdom due to challenging economic conditions[231] Cost and Expenses - Operating expenses decreased by 1.4% to $20,093 million, down from $20,384 million in Q1 2023[189] - Total operating expenses decreased by $291 million, or 1.4%, to $20,093 million compared to the previous year[250] - Adjusted total operating expenses decreased by $414 million, or 2.0%, to $19,959 million[250] - Compensation and benefits increased by $175 million, or 1.5%, primarily due to direct labor costs rising by $199 million[250] - Total cost per piece increased by 4.2%, driven by higher pickup and delivery costs and increased compensation expenses[222] Strategic Initiatives - The company opened a new facility at its global air hub for complex healthcare shipments, enhancing its healthcare strategy[184] - UPS entered into an agreement with the U.S. Postal Service to become its primary air cargo provider, expected to impact air network expenses starting Q2 2024[184][203] - The acquisition of MNX Global Logistics in Q4 2023 contributed to increased revenue in logistics, despite overall declines in freight forwarding[185] Cash Flow and Capital Expenditures - Net cash from operating activities increased to $3,316 million, up from $2,357 million in the previous year[275] - Total capital expenditures for the quarter were $1.035 billion, representing 4.8% of revenue, an increase from 2.7% in the same quarter of the previous year[278] - Cash proceeds from the sale of marketable securities amounted to $2.6 billion, providing additional resources for short-term and strategic operating needs[279] - Net cash used in financing activities was $(3.666) billion, with no share repurchases in the first quarter of 2024 compared to $750 million for 4.1 million shares repurchased in the same quarter of 2023[284] Debt and Financial Position - Total debt outstanding at the end of the quarter was $20.013 billion, down from $22.188 billion in the previous year[284] - The company had $4.5 billion in cash, cash equivalents, and marketable securities as of March 31, 2024[274] - The company anticipates capital expenditures of approximately $4.5 billion in 2024, with about 50% allocated to network enhancement projects and technology initiatives[278] Tax and Investment Income - Income tax expense decreased by $204 million, or 32.5%, to $423 million[271] - Investment income decreased by $51 million, or 30.2%, primarily due to a reduction in invested balances[265] Risk Management and Controls - The company does not engage in speculative trading activities, managing market risks through various financial instruments[297] - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended March 31, 2024[304] - The effectiveness of disclosure controls and procedures was confirmed by the Principal Executive Officer and Principal Financial and Accounting Officer as of the end of the reporting period[303]

The company's recent results were mixed, and Wall Street's reaction was underwhelming.It's fair to say Wall Street reacted lukewarmly to UPS' (UPS 0.14%) first-quarter earnings report. On the positive side, five of them nudged their price targets higher (with BMO Capital taking it to $169). Still, only one has a positive rating on the stock (Oppenheimer's "outperform" rating). The rest remained at "hold/neutral/market perform."UPS's mixed first quarterThe lack of enthusiasm is understandable. Although UPS b ...

The company's first-quarter earnings helped restore confidence in its full-year guidance.UPS (UPS 0.14%) investors got what they wanted from the company's recent first-quarter earnings report. The market was left unimpressed after management's investor and analyst day in late March when management laid out its three-year strategic aims and financial targets. However, the latest earnings helped restore confidence in those targets. Still, is it enough to make the stock a buy? Here's the lowdown.UPS cheers the ...

100pk UPS stock: competition and shipping volume pressure United Parcel Service, Inc. (NYSE:UPS) has been facing substantial operating and competition pressure lately. As a result, in 2023 alone, its top line dropped almost 8% year-over-year and earnings dropped even more. Looking ahead, I see such pressure to persist. Yet, as to be detailed next, the stock is not trading at an obvious valuation discount in my view. Therefore, I expect an uninspiring return potential from the stock in the next 2~3 years ...

Key PointsUnited Parcel Service had another weak quarter and isn't guiding for much better later in the year. Cash flow is sound but insufficient to support an outlook for robust dividend increases or share repurchases. The company is building leverage for a business rebound, but the stock could move lower before the rebound begins. 5 stocks we like better than United Parcel ServiceIf United Parcel Service NYSE: UPS can be used as a leading indicator of the economy and S&P 500 performance, it sends a mixed ...

United Parcel Service (UPS) came out with quarterly earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.33 per share. This compares to earnings of $2.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.52%. A quarter ago, it was expected that this package delivery service would post earnings of $2.44 per share when it actually produced earnings of $2.47, delivering a surprise of 1.23%.Over the last four qu ...

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UPS is looking to returns and big-and-bulky deliveries to expand its addressable market at a time when its shipping volumes have been decreasing. The company saw a slower rate of decline in shipping volumes during the first quarter while still facing a challenging macroeconomic environment, UPS executives said Tuesday (April 23) during the company’s quarterly earnings call.During the three months ended March 31, the company saw average daily volumes decrease 3.2% year over year in the U.S. domestic segment ...