UPS 4Q 2020 Tops Consensus Estimates
February 02, 2021
reported fourth-quarter 2020 consolidated revenue of $24.9 billion, a
21.0% increase over the fourth quarter of 2019. Consolidated average
daily volume increased 10.6% year over year. Operating profit was $2.2
billion, up 1.6% compared to last year’s fourth quarter, or 26.0% on an
adjusted basis. Net loss was $3.3 billion for the quarter; adjusted net
income was $2.3 billion or 26.4% above the same period last year.
The UPS EPS of $2.66 per share was more than the $2.14 which was expected. The firm's revenue of $24.9 billion topped the consensus estimate $22.87 billion.
the fourth-quarter of 2020, GAAP results include a total charge of $5.6
billion, or $6.38 per diluted share, comprised of a non-cash, after-tax
mark-to-market (MTM) pension charge of $4.9 billion, an after-tax
transformation charge of $114 million and an after-tax impairment charge
of $545 million associated with the Company’s decision to sell UPS
Freight. The Company’s fourth-quarter 2019 GAAP results included a total
charge of $1.9 billion, or $2.23 per diluted share, comprised of a
non-cash, after-tax MTM pension charge of $1.8 billion, an after-tax
transformation charge of $39 million and a U.S. Domestic after-tax legal
reserve charge of $91 million.