A UPS driver pulls a cart with packages while making deliveries on June 12, 2023 in San Francisco, California.
Justin Sullivan | Getty Images
Shares of the United Parcel Service slipped nearly 5% Thursday after the company reported a bigger-than-expected revenue decline and cut its revenue guidance for the year.
UPS reported a 12.8% decrease in revenue year-over-year with consolidated revenue around $21.1 billion. Here’s how the company performed compared to Wall Street estimates:
- Adjusted earnings: $1.57 vs. $1.52 per share expected, according to LSEG, formerly known as Refinitiv
- Revenue: $21.06 billion vs. $21.46 billion expected
For the three-month period ended Sept. 30, UPS reported earnings of $1.13 billion, or $1.31 a share, compared with $2.58 billion, or $2.96 a share, a year earlier. Adjusted for one-time earnings, per share earnings were $1.57.
Revenue declined to $21.06 billion from $24.16 billion.
The company also lowered its revenue outlook for the full year. UPS now expects this year’s consolidated revenue to be between $91.3 billion and $92.3 billion, down from its previous projection of $93 billion.
The delivery giant cited global economic uncertainty as the main factor in lowering its outlook. It didn’t directly mention any financial impacts from negotiations with Teamsters in August in efforts to avoid a labor strike.
“While unfavorable macro-economic conditions negatively impacted global demand in the quarter, our U.S. labor contract was fully ratified in early September and volume that diverted during our labor negotiations is starting to return to our network,” CEO Carol Tomé said in a statement. “Looking ahead, we are well-prepared for the peak holiday season.”