UPS (NYSE:UPS) delivered better-than-expected fourth-quarter earnings and raised its quarterly dividend by 6.6%, sending its shares higher in early New York trade.
The package delivery company reported adjusted diluted earnings per share of $3.62 for the three months ended December 21, 2022, up 0.8% from the corresponding quarter and ahead of the $3.59 forecast by analysts according to Refinitiv.
While a 2.7% decrease in revenue to $27.1 billion fell short of the $28.1 billion expected by analysts, the company declared a quarterly dividend of $1.62 per share and authorized a new $5 billion share repurchase program.
“I want to thank all UPSers for delivering what matters throughout the holiday season, including industry-leading service to our customers for the fifth consecutive year,” UPS CEO Carol Tomé said in a statement. “For the year, we reached our targeted consolidated operating margin and return on invested capital goals one year earlier than originally anticipated. Our results in 2022 demonstrate our strategy is working.”
For the full 2022 year, UPS reported a 3.1% increase in revenue to $100.3 billion, while adjusted operating profit came in 5.4% higher at $13.9 million with an adjusted operating margin of 13.8%.
Adjusted diluted earnings per share totaled $12.94 for the year, up from $12.13 in 2021.
Cash from operations was $14.1 billion and free cash flow was $9 billion. In addition, the company said it returned $8.6 billion of cash to shareholders through dividends and share buybacks.
For the full year 2023, UPS said it expects revenue to be between $97 billion and $99.4 billion and a consolidated adjusted operating margin of between 12.8% and 13.6%.
Its shares traded 4% higher at $184.22 by noon in New York.
Contact the author at stephen.gunnion@proactiveinvestors.com