Summary by Moomoo AI
UPS reported Q2 2024 revenue of $21.8 billion, down 1.1% year-over-year, while operating profit declined 30.1% to $1.9 billion. Average daily package volume increased slightly by 0.1%, but revenue per piece decreased 1.7% to $13.68 due to unfavorable changes in product mix. Operating margin contracted to 8.9% from 12.6% in Q2 2023.The U.S. Domestic segment saw revenue decline 1.9% to $14.1 billion despite 0.7% higher daily volume, as ground revenue per piece fell 3.3%. International Package revenue decreased 1.0% to $4.4 billion amid a 2.9% drop in daily volume. Supply Chain Solutions revenue grew 2.6% to $3.3 billion, driven by 8.0% growth in logistics operations.Management expects revenue and operating profit growth in H2 2024 as volume increases and wage growth moderates. The company announced plans to divest its Coyote truckload brokerage business for $1.025 billion and acquire Estafeta in Mexico. UPS will target approximately $500 million in share repurchases in H2 2024, supported by lower capital expenditure plans and the anticipated Coyote divestiture proceeds.
