UPS Expected to See Higher 1Q Profit Amid Realignment, Tariff Concerns -- Earnings Preview

Dow Jones
04-28
 

By Denny Jacob

 

United Parcel Service is scheduled to report its first-quarter results Tuesday before the market opens. Here is what you need to know.

 

REVENUE: The package-delivery company is expected to post around $21 billion in revenue for the quarter, slightly declining from $21.7 billion in revenue in the prior-year period, according to analysts polled by FactSet.

NET INCOME: The Atlanta-based company is expected to post $1.18 billion in net income compared with $1.11 billion in the year-earlier period, according to analysts polled by FactSet.

ADJUSTED EARNINGS: Stripping out certain one-time items, earnings are expected to come in at $1.38 a share, according to analysts polled by FactSet.

The stock declined around 13% during the quarter and recently traded around $98.76.

 

WHAT TO WATCH

--Look for commentary from UPS on risks tariffs are bringing to its business. The company in March introduced a global checkout system that eliminates unexpected import-cost fees, a move that may spur more shipments its way as consumers and businesses alike navigate higher costs associated with tariffs imposed by the U.S. and other countries.

--Commentary on tariffs will be closely watched by investors, particularly whether they prompt UPS to reduce its outlook for the year further. The company in January forecast revenue to fall from 2024, mainly citing plans to phase out more than half of the business it does with Amazon

--UPS' shift away from Amazon will require it to convince investors of future growth as it realigns its business. The company may discuss how Canada's Andlauer Healthcare Group fits into its larger strategy. The company in April bought Andlauer for roughly $1.6 billion in an effort to grow in healthcare transportation and logistics.

 

Write to Denny Jacob at denny.jacob@wsj.com

 

(END) Dow Jones Newswires

April 28, 2025 10:29 ET (14:29 GMT)

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