UPS beat Q4 expectations but forecasted lower revenue, shares fell 16%

From Nasdaq: 2025-01-30 14:06:18

United Parcel Service (UPS) beat Q4 expectations but forecasted 2025 revenue of $89 billion, below the $95 billion consensus. Amazon, a key partner, will reduce volume by over 50% by 2026. UPS shares fell 16% post-announcement. UPS is focusing on profitability, bringing SurePost in-house, and reconfiguring its U.S. network.

Amazon contributed 12% to UPS’ $91.1 billion 2024 revenue. UPS shares have halved since pandemic highs due to fewer catalysts. Strategic actions include reducing Amazon volume and in-sourcing SurePost. Investors may need patience as UPS implements efficiency initiatives to save $1 billion and drive long-term growth.

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Read more at Nasdaq: Why UPS Stock Is Plunging Today