UPS reported mixed Q4 results, plans to reduce Amazon volumes, leading to 14% stock drop

From Nasdaq: 2025-02-02 22:13:48

UPS (NYSE: UPS) reported Q4 revenues of $25.3 billion, slightly missing estimates, but earnings of $2.75 per share exceeded expectations. The company plans to reduce Amazon volumes by over 50% by 2026, leading to a 14% stock drop. Despite this, UPS aims to boost profitability and expand margins in 2025.

In Q4, UPS saw a 1.5% revenue increase to $25.3 billion, with U.S. Domestic sales up 2.2% and International sales up 6.9%. Despite a decline in U.S. Domestic daily package volume, EPS rose 11% to $2.75. However, the company’s 2025 sales outlook of $89 billion fell short, impacting the stock performance.

Although UPS stock has underperformed recently, the Trefis High-Quality Portfolio has outperformed the S&P 500, offering a smoother ride with better returns. With UPS trading at a P/E ratio under 15x, investors may find value in the stock for long-term growth potential. Peers’ performance metrics also indicate UPS has room for growth.



Read more at Nasdaq: What’s Next For UPS Stock?