5 Takeaways From the United Parcel Service Conference Call – Motley Fool

The takeaway
All told, UPS’ delivery during peak has helped derisk the stock, and underlying revenue improvements should start to shine through provided oil prices don’t continue to fall sharply. Investors shouldn’t worry too much about Amazon, because UPS isn’t purely seeking e-commerce volume.

Moreover, the investment thesis on UPS isn’t just about growing e-commerce revenue, it’s also about the company’s ability to deliver, and given the $5 billion in free cash flow in 2015 (representing 5.2% of its enterprise value), I would argue that the stock looks a little undervalued at $97.

 

UPS Board of Directors Names David Abney Chairman, Appoints William R. Johnson to Lead Independent Director Role, and Announces Quarterly Dividend

The UPS® (NYSE:UPS) Board of Directors today announced it has unanimously elected David P. Abney, UPS Chief Executive Officer, as Chairman of the Board, effective immediately. Abney succeeds Scott Davis as Chairman, who will retire from his position on the UPS Board effective as of the 2016 Annual Meeting of Shareowners.

In other business, the UPS Board of Directors also today declared a regular quarterly dividend of $0.78 per share on all outstanding Class A and Class B shares.  The dividend is payable March 9, 2016, to shareowners of record on February 22, 2016.

UPS has a long history of its commitment to cash dividends. For more than four decades it has either increased or maintained its dividend. Since 2000, its dividend has more than quadrupled.

Bernstein Relieves Amazon Entry Fears for FedEx Corporation, UPS Investors – BidnessEtc

Bernstein analyst David Vermon attributed the beginning of investors’ worries to Amazon.com, Inc.’s (NASDAQ:AMZN) move to set up 23 sortation centers across the country. He assured investors that the company was not entering the ground delivery business, the stronghold for FedEx and United Parcel Service, Inc. (NYSE:UPS).

Moreover, the bank noted that the e-commerce giant was insourcing postal injection operations, and not entering the ground delivery business. Mr. Vermon further noted that the corporation would have to operate in the densest areas to operate profitably, and carried an overall disadvantage against FedEx and UPS—limiting the marginal risk that Amazon’s moves posed to them. He added: “Amount of marginal Amazon volume at risk is low as expansion constrained by route economics / population density, and daily delivery requirement. As a competing service, low commercial appeal.”

Why Amazon Needs to Dump UPS and Fedex – Investopedia


Seldom is there a company that’s as dependent on others as Amazon.com Inc (AMZN) is dependent on Fedex Corp (FDX) or United Parcel Service Inc (UPS). The e-commerce giant sends out over 300 million packages a year and spent $13 billion on fulfillment costs in fiscal 2015. With fast shipping such a key component of Amazon’s business, shareholders should demand a fail-proof shipping service that is scalable and can handle Amazon’s future growth. Neither Fedex nor UPS can provide that service.

UPS Shares Valentine’s Day ‘Lovegistics’

  • 100 Million Flowers Flow Through UPS Global Logistics Network
  • Last Minute Cupids Can Ship as Late as Friday February 12th

Cupid will receive a helping hand this Valentine’s Day, as UPS® (NYSE: UPS) fills its network this week with flowers, steaks, sweets and gifts.

UPS will move more than 100 million flowers or 9 million pounds, to love birds around the United States. That’s enough to fill approximately 70 Boeing 767 cargo aircraft. Many of the roses and tropical flowers originate from Latin American countries, primarily Colombia and Ecuador. More than 90% of the imported flowers will travel through Miami International Airport (MIA) where UPS is the largest air cargo carrier. From the flower farm to the importer, the journey takes less than two days.