The shipping giant's earnings fell way below analysts’ expectations
Shares of United Parcel Service $UPS (UPS) declined sharply on Tuesday after the shipping giant reported second-quarter earnings that were below analysts’ expectations. In the afternoon, UPS stock dropped over 13% to $125, marking its worst day on record.
The company’s profits dropped by over 30% to $1.94 billion from $2.78 billion the previous year. Compared to $2.08 billion a year ago, the company reported a quarterly net income of $1.41 billion.
The earnings report illustrates the severity of the global freight recession due to weak demand and soft shipping prices. However, the Atlanta-based company has returned to volume growth in the U.S. for the first time in nine quarters, said CEO Carol Tomé.
“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,” he added.
The company reported its earnings per share (EPS) as $1.79, which is adjusted, compared to the expected $1.99. The revenue was $21.8 billion, falling short of the expected $22.18 billion.
Not only that, the company also lowered its guidance report and now expects 2024 revenue to be around $93 billion, down from a previous forecast of up to $94.5 billion.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.
