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UPS stock rose in morning trade on February 1, 2022, after the company reported a solid Q4 and announced plans to open a lot of delivery centers by the end of 2022.
UPS Releases 4Q 2021 Earnings
UPS (NYSE:UPS) today announced fourth-quarter 2021 consolidated revenue of $27.8 billion, an 11.5% increase over the fourth quarter of 2020. Consolidated operating profit was $3.9 billion, up 91.0% compared to the fourth quarter of 2020, and up 37.7% on an adjusted basis. Diluted earnings per share were $3.52 for the quarter; adjusted diluted earnings per share were 35.0% above the same period in 2020. UPS reported Q4 adjusted EPS of $3.59 versus the consensus estimate of $3.10. The company reported Q4 revenue of $27.8B versus the consensus estimate of $27.06B.
Highlights:
- Consolidated Revenues of $27.8B, Up 11.5% from Last Year
- Consolidated Operating Profit of $3.9B, Up 91.0% from Last Year; Up 37.7% on an Adjusted* Basis
- Diluted EPS of $3.52; Adjusted Diluted EPS Up 35.0% Over Last Year to $3.59
- UPS Board of Directors Declares Quarterly Dividend of $1.52, a Per-Share Increase of 49% Over the Prior Year
- UPS received 11.7% of total revenue from Amazon in 2021
- UPS to open 30 delivery centers, 2 sorting hubs in 2022
- UPS (UPS) also plans to take delivery of two Boeing (BA) 747-8 freighters in 2022
“I want to thank all UPSers for their outstanding efforts throughout the holiday season and for once again delivering industry-leading service to our customers.” said Carol Tomé, UPS chief executive officer. “The execution of our strategy is delivering positive financial results and driving strong momentum as we move into 2022.”
UPS (NYSE: UPS) is one of the world’s largest companies, with 2021 revenue of $97.3 billion, and provides a broad range of integrated logistics solutions for customers in more than 220 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s 534,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven
Boeing announces UPS purchase of 19, 767 Freighters
On December 21, 2021, Boeing (BA) announced an order for 19, 767 Freighters from UPS (UPS) highlighting the 767 Freighter’s outstanding operational efficiency and payload capability to serve its customers at a time of robust air cargo demand. The deal adds to a record-breaking year for Boeing freighter sales, including 80 firm orders for new widebody freighters and more than 80 orders for Boeing Converted Freighters. In 2021 air cargo demand has surged due to an expansion of e-commerce and express cargo markets.
UPS upgraded to Buy from Neutral at Citi
On December 15, 2021, Citi analyst Christian Wetherbee upgraded UPS (UPS) to Buy from Neutral with a price target of $250, up from $245. Parcel follows rail in the analyst’s preference order as he remains “quite confident about pricing power.” Wetherbee also expects volume comps to get easier as the year progresses, and says air cargo tightness should remain a tailwind through much of the year as capacity on long haul international lanes remains constrained. UPS now moves ahead of FedEx (FDX) in the analyst’s rankings, as believes the company’s “disciplined execution will yield steadier outperformance.”
📺 UPS earnings beat estimates, raises quarterly dividend 49%
📈 UPS Stock Technical Analysis
The short term trend is negative, the long term trend is neutral. UPS is one of the better performing stocks in the Air Freight & Logistics industry, it outperforms 70% of 17 stocks in the same industry. A new 52 week high is currently being made by UPS, which is a very good signal considering the S&P500 is only trading in the upper part of its 52 week range, so UPS is leading the market. Volume is considerably higher in the last couple of days.
There is a support zone ranging from 217.50 to 218.17. This zone is formed by a combination of multiple trend lines in multiple time frames. There is also a support zone ranging from 210.70 to 213.23. This zone is formed by a combination of multiple trend lines in the daily time frame. Finally, there is a support zone ranging from 205.10 to 207.27. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
The technical rating of UPS is bad and it also does not present a quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. UPS stock has a Setup Rating of 2 out of 10. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when UPS stock consolidates and has a Setup Rating of 8 or higher.
