From The Motley Fool · Bram Berkowitz · · 1m
Is UPS a Buy After Earnings Beat?
UPS beats earnings and raises outlook, analysts say stock is a buy.
In brief
UPS beats earnings and raises outlook, analysts say stock is a buy. UPS raised its full-year revenue and profit outlook after beating earnings estimates, with analysts raising their price target and noting the company's dividend yield. Originally reported by The Motley Fool.
Earnings Beat
Shares rose nearly 5.8% after UPS delivered a beat-and-raise quarter.
Earnings Results
Adjusted earnings per share of $1.69 beat estimates by $0.06, revenue of $22.9 billion topped expectations by over $600 million.
Full-Year Outlook
UPS raised its full-year revenue outlook to $92.6 billion and adjusted operating profit to roughly $8.75 billion.
Turnaround Plan
UPS launched a turnaround plan called 'efficiency reimagined' in late 2024 to cut costs, lean into automation, and exit low-margin businesses.
CEO Statement
UPS CEO Carol Tomé said the strategy is working, driving premium growth and improving revenue quality and mix.
Analyst View
Truist analyst raised price target to $120 per share and maintained a buy rating after UPS improved margins and revenue quality.
The short version
UPS raised its full-year revenue and profit outlook after beating earnings estimates, with analysts raising their price target and noting the company's dividend yield.
