United Parcel Service, Inc. (NYSE:UPS) stock fell 1.94% (As on February 19, 11:48:06 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 22. Consolidated operating profit was $3.2 billion, down 17.9% compared to the fourth quarter of 2021, and down 3.3% on an adjusted basis. U.S. Domestic Segment, Revenue grew 3.1%, driven by a 7.2% increase in revenue per piece and  adjusted operating margin of 12.8%. International Segment Revenue decreased 8.3%, driven by an 8.6% reduction in average daily volume due to lower domestic volume and softness in China trade lanes. Supply Chain Solutions Revenue decreased 18.1%, due to volume and market rate declines in air and ocean freight forwarding, partially offset by growth in our healthcare business.

UPS in the fourth quarter of FY 22 has reported the adjusted earnings per share of $3.62, beating the analysts’ estimates for the adjusted earnings per share of $3.58, according to Zacks Investment Research. The company had reported 2.7 percent fall in the adjusted revenue to $27.03 billion in the fourth quarter of FY 22, missing the analysts’ estimates for revenue of $27.95 billion. Softer global demand drove down Forwarding volume and market rates. Adjusted operating margin expanded to 12.8%, up 60 basis points compared to 4Q21. Adjusted operating profit decline of $240M, includes a $139M reduction in demand related surcharge revenue and $98M negative impact from currency. Adjusted operating margin was of 22.0%.

Additionally, the UPS Board of Directors has approved an increase to the company’s quarterly dividend. UPS will pay a first-quarter 2023 dividend of $1.62 per share on all outstanding Class A and Class B shares. The dividend is payable March 10, 2023 to shareowners of record on February 21, 2023. In addition, the UPS Board of Directors has approved a new $5 billion share repurchase authorization, replacing the company’s existing authorization. In addition, the Company returned $8.6 billion of cash to shareowners through dividends and share buybacks.

For the full year 2023, UPS expects revenue to be between $97.0 billion and $99.4 billion and consolidated adjusted operating margin of between 12.8% and 13.6%. The company is planning capital expenditures to be about $5.3 billion, dividend payments to be around $5.4 billion, subject to board approval, and share repurchases to be around $3 billion. The effective tax rate is expected to be around 23.5%.