UPS boosts volume in US for first time since 2022, but profit and revenue slide
Shares dropped 7% before the market opened on Tuesday.
UPS boosted its volume in the U.S. for the first time since 2022 during its second quarter, but profit and revenue fell short of Wall Street expectations, partly due to a hefty charge.
Shares dropped 7% before the market opened on Tuesday.
CEO Carol Tome said the package delivery company returned to volume growth in the U.S. during the quarter for the first time in nine quarters.
“This quarter was a significant turning point for our company," Tome said in a prepared statement. For the three months ended June 30, United Parcel Service Inc. earned $1.41 billion, or $1.65 per share.
Stripping out one tome costs, earnings were $1.79 per share.
This was well below the $1.98 per share that analysts polled by Zacks Investment Research were calling for.
UPS said that the quarter included a charge of $120 million, or 14 cents per share, made up of of a one-time payment of $94 million to settle an international regulatory matter.
The period also included transformation and other charges totaling $26 million.Quarterly revenue was $21.82 billion, short of Wall Street’s estimate of $22.31 billion.
The Atlanta company now anticipates full-year revenue of about $93 billion. Its previous outlook was for revenue in a range of approximately $92 billion to $94.5 billion.
Analysts surveyed by FactSet expect revenue of $92.77 billion.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: How Rs 8,00,000 one-time investment can create Rs 2,40,00,000 retirement corpus? See calculations to know
Old vs Revised New Tax Regime: How much tax will you save on Rs 7.5 lakh, Rs 10 lakh, Rs 15 lakh, or Rs 20 lakh annual income? See expert analysis
NSC vs FD: Which guaranteed return scheme can give higher maturities on Rs 5,00,000, 7,00,000 & 9,00,000 investments in 5 years
05:26 PM IST