UPS (NYSE:UPS) reported mixed results in the first quarter. The company announced Q1 adjusted earnings of $1.43 per diluted share, which declined 35% year-over-year but surpassed consensus estimates of $1.36 per share. The logistics giant generated Q1 revenues of $21.7 billion, which represented a 5.3% decline year-over-year and fell short of analysts’ estimates of $21.96 billion.
UPS saw its average daily volumes decline in domestic and international markets by 3.2% and 5.8%, respectively, in the first quarter. However, the company noted that volumes improved through the quarter.
Earlier this year, UPS had slashed 12,000 jobs for cost savings of $1 billion in 2024 to counter falling volumes and higher labor costs.
UPS’ Forward Guidance
Looking forward, the company reiterated its FY24 guidance and expects its revenues to range from $92 billion to $94.5 billion, with adjusted operating margin likely to be between 10% and 10.6%.
Is UPS Stock a Buy or Sell?
Analysts remain cautiously optimistic about UPS stock, with a Moderate Buy consensus rating based on 10 Buys, nine Holds, and one Sell. Over the past year, UPS has declined by more than 20%, and the average UPS price target of $159.95 implies an upside potential of 10% from current levels. However, these analyst ratings are likely to change following UPS’s Q1 earnings today.
