: UPS stock drops after revenue miss, lowered outlook amid volume impact from labor negotiations

Shares of United Parcel Service Inc. UPS dropped 5.6% toward a six-week low in premarket trading Tuesday, after the package delivery giant reported second-quarter revenue that fell short of expectations and cut its full-year outlook, citing the volume impact from labor negotiations. Net income fell to $2.08 billion, or $2.42 a share, from $2.85 billion, or $3.25 a share, in the year-ago period. Excluding nonrecurring items, such as TK, adjusted earnings per share of $2.54 beat the FactSet consensus of $2.49. Revenue declined 10.9% to $22.06 billion, below the FactSet consensus of $23.04 billion. Among UPS’s business segments, U.S. Domestic package revenue declined 6.9% to $14.40 billion to miss the FactSet consensus of $14.92 billion, International package revenue dropped 13% to $4.42 billion to miss expectations of $4.71 billion and Supply Chain Solutions revenue sank 23.4% to $3.24 billion, below forecasts of $3.55 billion. For 2023, the UPS cut its revenue guidance to $93 billion from $97 billion, “primarily to reflect the volume impact from labor negotiations and the costs associated with the tentative agreement reached with the International Brotherhood of Teamsters on July 25, 2023.” The stock has gained 4.8% year to date through Monday, while the Dow Jones Transportation Average DJT has advanced 22.4% and the Dow Jones Industrial Average DJIA has tacked on 7.0%

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