UPS Q1 Earnings Surpass Estimates, Increase Year Over Year

Core Viewpoint - United Parcel Service, Inc. (UPS) reported first-quarter 2025 earnings of $1.49 per share, exceeding the Zacks Consensus Estimate of$ 1.44 and showing a year-over-year increase of 4.2% [1] - Revenues for the quarter were $21.5 billion, surpassing the Zacks Consensus Estimate of$ 21.1 billion but reflecting a 0.7% decline year over year [1] Financial Performance - U.S. Domestic Package revenues reached $14.46 billion, a 1.4% year-over-year increase, driven by air cargo growth and a 4.5% rise in revenue per piece, despite a decline in volume [3] - The segment's operating profit (adjusted) grew 19.3% year over year to$ 1.01 billion, with an adjusted operating margin of 7% [3] - International Package division revenues totaled $4.37 billion, up 2.7% year over year, supported by a 7.1% increase in average daily volume, although adjusted operating profit fell 4.1% to$ 654 million, with a 15% operating margin [4] - Supply Chain Solutions revenues decreased 14.8% year over year to $2.71 billion due to the divestiture of Coyote, with adjusted operating profit down 55% to$ 98 million and an adjusted operating margin of 3.6% [5] - The overall adjusted operating margin for UPS was 8.2% [5] Strategic Outlook - CEO Carol Tomé emphasized the company's commitment to leveraging its integrated network and trade expertise to navigate the dynamic trade environment, while also focusing on cost reduction and network reconfiguration [2] - UPS is not providing updates to its previously issued consolidated full-year outlook due to macroeconomic uncertainties [6] Industry Context - UPS holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the current market [8] - The company is positioned to benefit from increased e-commerce, automation, and outsourcing trends, which may enhance its performance [7]