What UPS' Coronavirus-Influenced Quarterly Report Revealed to Investors
The key word to take away from the latest earnings report from UPS (NYSE: UPS) is "uncertainty." In a move unlikely to surprise anyone, UPS followed FedEx (NYSE: FDX) in withdrawing its full-year guidance due to the impact of the COVID-19 pandemic. However, the real issue is that the coronavirus has caused a shift in the company's revenue streams, making it much harder to track progress on its long-term margin expansion plans. Let's take a closer look.
First, let's start with some numbers from the company's April 28 report. As you can see in the table below, UPS revenue actually increased in the quarter compared to the year-ago period, but adjusted total operating income decreased by a whopping 26.4%. The contrast is most striking in the U.S. domestic package segment, where a high-single-digit revenue increase matched with a 42.2% fall in operating profit.
First-Quarter 2020 Revenue
Source Fool.com
