UPS' Q4 2021 earnings top consensus estimates

UPS (NYSE: UPS) has announced its Q4 2021 consolidated revenue of $27.8 billion, representing a YoY increase of 11.5%. The company beat consensus revenue estimates of $27.01 billion. Consolidated operating profit during the quarter was $3.9 billion, representing a YoY increase of 91% and up 37.7% on an adjusted basis.

Diluted EPS grew 35% YoY

Q4 2021 diluted earnings per share were $3.52, a YoY increase of 35%, which was better than the EPS of $3.09 that analysts had predicted. GAAP results during the quarter included a $59 million or $0.07 per diluted share charge that comprised a non-cash, after-tax mark-to-market pension fee of $14 million-plus after-tax transformation and another cost of $5 million. CEO Carol Tome stated:

The US domestic segment reported revenue of around $17.7 billion, representing YoY growth of 12.4%, driven by a 10.5% growth in revenue per piece. The operating margin was $2.103 billion, up 11.9% YoY, while adjusted operating profit was $2.165 billion, a 12.2% increase.

International operations generated revenue of $5.4 billion, a 13.1% YoY growth driven by 16.4% growth in revenue per piece. The operating margin was 24.5%, while the adjusted operating margin for the international segment was 24.7%. Supply chain solutions generated $4.677 billion, a 6.7% increase driven by Forwarding and Logistics operations that grew 28%.

Full-year consolidated revenue of $97.3 million

For the full year, consolidated revenue was up 15% to $97.3 billion, operating profit was $12.8 billion, and adjusted operating profit increased 50.8% to $13.1 billion. The company reported diluted EPS of $14.68, with adjusted diluted EPS being $12.13.

UPS has confirmed that it will pay a dividend of $1.52 per share on fiscal Q1 2022 on all its outstanding Class A and Class B shares. Dividends will be payable to shareholders that will be on record from February 22, 2022, to March 10, 2022.

For fiscal 2022 the company expects revenue of $102 billion compared to estimates of $100 billion. In addition, the company expects to deliver 2023 consolidated operating margin and revenue targets one year early.