Please ensure Javascript is enabled for purposes of website accessibility

UPS Beats on Q4 Revenue, Earnings

By Eric Volkman - Feb 2, 2021 at 9:08PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company posted double-digit growth in all three of its business segments.

UPS (UPS -1.04%) delivered a pleasing quarter to its investors on Tuesday.

For the fourth quarter of 2020, the logistics giant posted revenue of $24.9 billion, which was a hearty 21% increase over the same period one year ago. Consolidated average daily volume rose as well, advancing by almost 11%. On a non-GAAP (adjusted) basis, UPS' net profit was $2.3 billion ($2.66 per share) for a 26% improvement.

Both headline numbers were well above prognosticator projections. On average, analysts following the stock had estimated $22.9 billion in revenue and a per-share adjusted net profit of $2.14.

Two packages on a doorstep.

Image source: Getty Images.

UPS benefited from growth in all three of its business segments: U.S. domestic, international, and supply chain and freight.

The smallest segment, supply chain and freight, had the best year-over-year improvement, with a nearly 29% revenue rise to $4.38 billion. The largest segment, U.S. domestic, increased 17% and, as ever, was responsible for the bulk of overall company revenue. International saw 27% growth.

UPS understandably didn't issue any revenue or profitability guidance for this current quarter or year, citing "uncertainty due to the global pandemic." It's planning capital expenditures of around $4 billion. It also expects to increase its quarterly dividend. It doesn't plan to repurchase its own shares during the year, or float new debt securities.

As they're wont to do, investors traded UPS up on the news of the estimate-busting quarter. On Tuesday, the stock closed 2.6% higher. The S&P 500 was up 1.4%.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

United Parcel Service, Inc. Stock Quote
United Parcel Service, Inc.
UPS
$179.92 (-1.04%) $-1.89

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.