UPS (UPS) Tops Q2 EPS by 1c, Revenues Beat; Reaffirms FY18 EPS Outlook, Boosts FY18 Cash Flow Target

UPS (NYSE: UPS) reported Q2 EPS of $1.94, $0.01 better than the analyst estimate of $1.93. Revenue for the quarter came in at $17.46 billion versus the consensus estimate of $17.33 billion.

• Reports 2Q18 EPS of $1.71, up 8.2%; Adjusted 2Q18 EPS of $1.94, up 23%
• International Operating Profit up 8.4%; Adj. Operating Profit Climbed 15%
• Average Daily Exports Increased 9.5%, Led by Europe
• Supply Chain & Freight Operating Profit up 1.9%; Adjusted Operating Profit Rose 17%
• U.S. Domestic Revenue Increased 6.3% on Higher Base Pricing
• YTD Cash from Operations was $7.2B and Free Cash Flow Surged to $4.4B
• Reaffirms 2018 Adjusted EPS and Raises Free Cash Flow Guidance to $5B

Outlook

“UPS is focused on executing our strategic imperatives for improved efficiency and high-quality growth,” said Richard Peretz, UPS’s chief financial officer. “We remain confident in our ability to achieve our full-year adjusted earnings per share target.”

• UPS expects 2018 adjusted diluted earnings per share in a range of $7.03 to $7.37.
• The company raises 2018 free cash flow target to $5.0 billion.
• The effective tax rate should be in a range of 23% to 24% for the remainder of the year.
• Capital expenditures in 2018 are planned between $6.5 billion and $7.0 billion.

GUIDANCE:

UPS sees FY2018 EPS of $7.03-$7.37, versus the consensus of $7.25.

For earnings history and earnings-related data on UPS (UPS) click here.

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