Here’s why UPS shares are trading lower today
United Parcel Service (NYSE: UPS) stock is lower after the company reported second-quarter financial results financial results below estimates.
What Happened: Tuesday morning, UPS reported its financial metrics for the second quarter of 2024.
- Revenue: $21.82 billion, missing the $22.183 billion estimate
- Adjusted EPS: $1.79, missing the $1.99 estimate
Consolidated revenues decreased 1.1% from $22.1 billion from the same period last year and adjusted EPS was 29.5% lower from the same period last year.
“This quarter was a significant turning point for our company as we returned to volume growth in the U.S., the first time in nine quarters. As expected, our operating profit declined in the first half of 2024 from what we reported last year. Going forward we expect to return to operating profit growth.”
Carol Tomé, UPS chief executive officer
The company’s U.S. domestic revenue decreased 1.9%, primarily due to a 2.6% decrease in revenue per piece due mostly to changes in product mix. International revenue decreased 1% primarily due to a 2.9% decrease in average daily volume. Supply chain solutions revenue increased 2.6% primary to growth in logistics, including healthcare.
UPS updated its full-year 2024 guidance, and now expects:
- Consolidated revenue expected to be approximately $93.0 billion
- Consolidated adjusted operating margin expected to be approximately 9.4%
- Capital expenditures of approximately $4.0 billion
- Targeting around $500 million in share repurchases
UPS shares were trading 7.84% lower to $133.80 at the time of writing. The stock has a 52-week high of $192.98 and a 52-week low of $132.90.
