UPS reports Q2 earnings below expectations with lower revenue and profit, resulting in 9% premarket drop

From CNBC: 2024-07-23 08:51:21

United Parcel Service (UPS) reported second-quarter profit and revenue below expectations, leading to a 9% drop in premarket trading. The company revised its 2024 revenue guidance to $93 billion and announced $4 billion capital expenditures, down from $4.5 billion. UPS also targets $500 million in share repurchases and recently acquired Mexican delivery company Estafeta.
In the quarter ended June 30, UPS earned $1.79 per share, falling short of Wall Street’s expectation of $1.99, with revenue of $21.8 billion vs. $22.18 billion expected. Net income was $1.41 billion. CEO Carol Tomé noted a return to volume growth in the U.S. for the first time in nine quarters. UPS is expecting to see operating profit grow moving forward.
Revenue for UPS fell to $21.82 billion from $22.06 billion a year prior, with declines in domestic and international segments. The supply chain solutions segment increased revenue by 2.6%, driven by logistics growth, including in health care. Overall, the shipping giant is navigating the challenges of soft pricing in the sector amidst a freight recession.
UPS recently secured a significant air cargo contract with the United States Postal Service, taking over from FedEx starting Sept. 30. Despite financial details not being disclosed, FedEx reported a $1.75 billion windfall from the deal in fiscal 2023. UPS continues to expand its global presence with strategic acquisitions and now aims to focus on growth in the upcoming quarters.



Read more at CNBC:: UPS earnings Q2 2024