UPS (UPS) Q4 2022 earnings summary

Executive summary

• Q4 revenue was $27.0B, down 2.7% YoY; adjusted diluted EPS was $3.62, up 0.8% YoY. Full-year operating-margin and ROIC targets were reached one year early.

• Holiday-season service ranked industry-leading for the fifth consecutive year.

Financial highlights

• Q4 operating profit was $3.2B, down 17.9% YoY; adjusted operating profit declined 3.3%. Reported operating margin was 11.8% and adjusted margin was 14.1%.

• FY22 revenue rose 3.1% to $100.3B; adjusted operating profit increased 5.4% to $13.9B. Reported and adjusted operating margins were 13.0% and 13.8%.

• FY22 diluted EPS was $13.20 and adjusted diluted EPS was $12.94.

Outlook and guidance

• FY23 revenue guidance is $97.0B–$99.4B; adjusted operating margin guidance is 12.8%–13.6%.

• FY23 capital expenditures are planned at $5.3B; dividend payments at $5.4B, subject to board approval; share repurchases at $3B; effective tax rate at 23.5%.