UPS Silences the Doubters

[cheryl]

UPS Silences the Doubters - Motley Fool

Key Points

• U.S. domestic margin was better than expected.
• The company's strategy of focusing on small and medium-sized businesses continues to pay off.
• Investors can expect management to raise its 2023 targets.

It's fair to say that investors approached UPS third-quarter earnings with a sense of trepidation. After all, its main rival FedEx gave a horrible earnings report in September, taking a $450 million hit due to constrained labor markets caused by the lingering impact of the COVID-19 pandemic. What would UPS report?

An excellent report

The answer to this question is that a super set of third-quarter earnings served to silence the doubters. And I know because I was one of them.
The critical number to follow with UPS is its U.S. domestic package segment margin. Not only is the segment the most significant earnings generator for the company, but the growth in its margin is the key to its 2023 targets laid out on its investor day presentation in June.

 

[IVE GOTTA PACKAGE 4U]

I hope they have a really good 2023 year that's when all of our contracts are up

 

[728ups]

I hope they have a really good 2023 year that's when all of our contracts are up

They will poor mouth as always

 

[IVE GOTTA PACKAGE 4U]

They will poor mouth as always

Oh I'm sure they'll find something

 

[tramtwo]

yeah we're going to need some 22.45 drivers or the company will go bankrupt

 

[UnionStrong]

Oh I'm sure they'll find something

Infrastructure

 

[IVE GOTTA PACKAGE 4U]

Infrastructure

Or big lump payment into management's pension fund since they were closing it in 2023

 

[UnionStrong]

Or big lump payment into management's pension fund since they were closing it in 2023

Now they’ll start buying trucks

 

[IVE GOTTA PACKAGE 4U]

Now they’ll start buying trucks

They should have started about a year ago

 

[DELACROIX]

Or big lump payment into management's pension fund since they were closing it in 2023

They have been doing that for the last 60 years..

 

[IVE GOTTA PACKAGE 4U]

They have been doing that for the last 60 years..

I can't wait to see the next contract doesn't offer...

 

[728ups]

I can't wait to see the next contract doesn't offer...

If leadership doesn't change it will be the worst contract ever

 

[IVE GOTTA PACKAGE 4U]

If leadership doesn't change it will be the worst contract ever

We had some leverage last time and they just folded.
I'm really hoping Oz gets in

 

[silenze]

yeah we're going to need some 22.45 drivers or the company will go bankrupt

Jamie Fleming is already working on that whiteboard chart.

 

[DELACROIX]

Jamie Fleming is already working on that whiteboard chart.

I will do it for half the price and I am a better artist, hair has to grow out a bit.

"whiteboard" would now be consider racist, "blackboard not too much better"..maybe just use "chalkboard"...

 

[rod]

I will do it for half the price and I am a better artist, hair has to grow out a bit.

"whiteboard" would now be consider racist, "blackboard not too much better"..maybe just use "chalkboard"...

How about a white guy with blackface makeup? Now that would make an interesting presentation. Then again according to tv today white people don't do commercials anymore.