UPS(US:UPS) ZACKSยท2024-11-04 12:25Company Overview - United Parcel Service, Inc. (UPS) is a logistics and transportation giant that has faced challenges, including a plan to lay off 12,000 employees due to a difficult 2023 [1] - Founded in 1907, UPS has grown to be one of the world's largest shipping couriers, but has recently seen a decrease in shipping demand as consumers return to in-store shopping post-pandemic [2] Financial Performance - UPS reported third-quarter 2024 earnings of $1.76 per share, exceeding the Zacks Consensus Estimate of $1.65, and showing a year-over-year improvement of 12.1% [6] - Revenue for the same quarter was $22.25 billion, slightly below the Zacks Consensus Estimate of $22.26 billion, but increased by 5.6% year over year [6] - The company's consolidated operating profit was $2.0 billion, up 47.8% from the third quarter of 2023 [6] Future Outlook - UPS's expected earnings growth rate for the current year is projected at -14.9%, but an estimated increase of 17.7% is anticipated for the next year [5] - The Zacks Consensus Estimate for current-year earnings has improved by 0.5% over the past 60 days [5] - The company has entered into an agreement to acquire Mexican logistics company Estafeta Mexicana, indicating a strategic move to enhance its market position [7] Environmental Initiatives - UPS is committed to reducing carbon emissions and has set targets to achieve 25% renewable electricity for its facilities by 2025, having already reached 8% by 2022 [8] - The company has planted nearly 30 million trees since 2012, appealing to environmentally conscious investors [8] Market Position - As of November 1, UPS's share price has fallen by 11.7% and is currently valued at around $134, which may indicate it is undervalued [4][9] - The transportation industry, including UPS, is a significant contributor to global carbon dioxide emissions, but UPS is recognized for its efforts in sustainability [8]