United Parcel Service Inc (NYSE:UPS) shares are trading lower after it reported second-quarter 2024 results.

Revenue declined 1.1% year-over-year to $21.82 billion, missing the consensus of $22.183 billion. Adjusted EPS was $1.79, down 29.5% YoY, missing the consensus of $1.99.

Consolidated operating profit fell 30.1% YoY to $1.9 billion; consolidated operating margin stood at 8.9%, while adjusted consolidated operating margin was 9.5%.

U.S. Domestic Segment revenue fell 1.9% YoY to $14.12 billion, reflecting a 2.6% decrease in revenue per piece due to changes in product mix. The adjusted operating margin stood at 7.1%.

International Segment revenue decreased by 1% YoY to $4.37 billion, owing to a 2.9% decrease in average daily volume. The adjusted operating margin was 18.9%.

Supply Chain Solutions Segment revenue increased by 2.6% to $3.33 billion, reflecting growth in logistics, including healthcare. The adjusted operating margin was 7.3%.

UPS’ operating cash flow for six months ended June 30, 2024, totaled $5.309 billion, and free cash flow was $3.365 billion.

2024 Outlook, updated: UPS now expects revenue of ~$93 billion (prior $92 billion-$94.5 billion) versus the $92.794 billion consensus and sees an adjusted operating margin of 9.4% (prior 10%-10.6%).

UPS expects 2024 capital expenditures of about $4 billion.

The company restarted its repurchase program, targeting around $1 billion annually.

Price Action: UPS shares are trading lower by 7.77% at $133.90 premarket at the last check on Tuesday.

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