United Parcel Service, Inc. (NYSE:UPS) released first-quarter financial results on Tuesday. The results were a lot better than the market was expecting, but the share price fell after the earnings call. During the call, company executives said they expected US package volumes to decline during the current quarter before improving in the next quarter.
Key takeaways from this analysis:
UPS has demonstrated that it has pricing power.
The dividend is well covered by cash flows.
Valuation reflects lower than average growth forecasts.