United Parcel Service ( NYSE: UPS ) Q4 results were colored by both cost saving efforts and volume declines.
For the fourth quarter, the transportation company notched $3.62 in earnings per share, narrowly beating consensus estimates. Management also highlighted margin performance success and projected 12.8% to 13.6% for the full year, in-line with the 13.2% estimate.
“For the year, we reached our targeted consolidated operating margin and return on invested capital goals one year earlier than originally anticipated,” CEO Carol Tomé said. “Our results in 2022 demonstrate our strategy is working.”
However, a 2.7% decline in revenue from the prior year quarter to $27B came up $1.03B short of Street expectations. Additionally, 27.9M in average daily package volume was below the 28.2M expectation. Total package volume for the quarter came in at 1.76B, below the 1.78B consensus.
For 2023, UPS expects revenue to be between $97B and $99.4B in revenue. Analysts had anticipated $99.93B for the full year.
Elsewhere, the company approved a dividend hike and new $5B buyback program .
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UPS delivers mixed earnings result, downbeat revenue outlook