MAAT INDEX

CLAIM #60191 · United Parcel Service Inc (UPS) · 2023Q4 earnings call · Jan 30, 2024 · due Dec 31, 2024

up 4% to 8% in the back half.

Brian O. Newman · CFO

CANNOT_DETERMINE
resolved by a revision, graded at the moved level · official band 5 percent
Committed
up 4% to 8% in the back half
Reported
we are resetting our revenue guidance, taking us to the midpoint of our original revenue guide

In context

d of the first-half, second-half cadence of that. And then just related to that, I want to make sure, so you said the $1 billion is included in the guidance. Can you just expand on that a little bit? Because if I take out the $1 billion, the implied change in profits relative to the improvement in revenue is quite a bit worse. So I'm just trying to understand what's actually included in the guidance from the $1 billion and how that kind of translates to what you're assuming underneath it in terms of change of profit, relative change of revenue? Brian Newman: Sure. Happy to Amit. So, from a shape of the year perspective, the full year we called revenue at 1% to 4%. But based on lapping of the volumes and the contract overlap, we would expect revenue to be flat to down 2% in the first half, up 4% to 8% in the back half. And from a profit perspective, I had mentioned that it's a tale of two cities. In terms of halves of the year, the second half of the year, we'd expect profit to grow about 20% to 30%. So Q1 will be the biggest challenge because we're lapping from a volume comp perspective and a full contract. But on a full-year basis, we're looking at OP margin 10% to 10.6%. I think you can expect the second half of the year to be 11% to 12% in that range and you can back into the first half. In terms of your question of backing out the $1 billion in cost, that $1 billion will be a cost-benefit in 2024. But I think we've said in the past, Amit, it would take twelve months to digest the new labor cost. We are confident we can get back to consistent expansion of US margins as we lap the first year of the c

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SEC filings for UPS · Claim quote is verbatim from the 2023Q4 earnings call.