Shares of United Parcel Service (NYSE: UPS) were on an upswing in pre-market trading on Tuesday after the company reported Q4 adjusted earnings of $3.62, up 0.8% year-over-year which surpassed analysts’ consensus estimate of $3.59 per share.
Revenues declined by 2.7% year-over-year to $27 billion missing Street estimates by $1 billion.
Moreover, the logistics company declared a quarterly dividend of $1.62 per share, an increase of 6.6% from its prior dividend of $1.52 UPS also authorized a new stock buyback program of $5 billion, replacing its existing share buyback program.
Looking forward, management now expects revenue for FY23 to be in the range of $97 billion and $99.4 billion versus a consensus of $99.93 billion with its adjusted operating margin expected to be between 12.8% and 13.6%.
The company has forecasted FY23 capex to be about $5.3 billion, with dividend payments of around $5.4 billion, subject to board approval, and “share repurchases to be around $3 billion.”
Overall, Wall Street analysts are cautiously optimistic about UPS stock with a Moderate Buy consensus rating based on five Buys, one Hold, and one Sell.
