UPS advances volume, misses income anticipations
Date
7/24/2024 8:29:43 AM
(MENAFN) During the second quarter (Q2), UPS experienced a notable uptick in United States package volume, marking its first increase since 2022. Despite this positive development, the company's financial performance fell below expectations, resulting in a significant decline in its stock price by over 7 percent during pre-market trading.
CEO Carol Tome described the quarter as a pivotal turning point for UPS. The company reported earnings of USD1.41 billion, equivalent to USD1.65 per share, or USD1.79 per share excluding one-time costs. However, these figures missed analysts' forecasts of USD1.98 per share.
UPS attributed part of its financial shortfall to a USD120 million charge related to a regulatory settlement, along with higher operating expenses that impacted overall profitability. Revenue for the quarter amounted to USD21.82 billion, which also fell short of the anticipated USD22.31 billion.
Looking ahead, UPS adjusted its full-year revenue projection to approximately USD93 billion. Despite the challenges in meeting profit expectations for Q2, UPS remains optimistic about its operational trajectory, emphasizing the strategic importance of increasing United States package volumes as a positive indicator amid ongoing market dynamics.
The company continues to navigate various operational challenges, including regulatory impacts and cost management strategies, as it seeks to strengthen its position in the global logistics and delivery market. UPS's performance in the coming quarters will be closely watched by analysts and investors alike, particularly in light of its efforts to optimize efficiency and profitability amidst evolving economic conditions and competitive pressures.
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