A United Parcel Service employee delivers packages in New York Metropolis.
Stephanie Keith | Getty Pictures
Shares of United Parcel Service fell Tuesday morning after the corporate stated greater charges offset lower-than-expected supply volumes within the second quarter.
The Atlanta-based firm stated volumes declined and fell in need of its forecast by 222,000 packages per day. It attributed the miss partially to reductions in its contracts with prospects like Amazon.
“We challenge by the top of this yr that Amazon income will likely be lower than 11% of our complete income,” stated CEO Carol B. Tome, noting that UPS agreed to a stage that is sensible for it and can give the corporate room to develop in different areas.
UPS stood by its full-year monetary outlook after posting earnings and income that topped Wall Road expectations.
The corporate’s inventory closed down about 3% at $181.53.
For the quarter, the corporate reported adjusted earnings of $3.29 per share, which was greater than the $3.16 per share analysts anticipated. Income for the interval was $24.77 billion, additionally topping the $24.63 billion Wall Road anticipated.
The sturdy greenback damage UPS worldwide enterprise, lowering worldwide income by $261 million and income by $60 million.
For the second half of the yr, Chief Monetary Officer Brian Newman stated that the corporate anticipates that quantity development charges “will enhance barely” with full-year GDP development anticipated to sluggish.
The corporate reaffirmed its outlook for full-year income of $102 billion and adjusted working margin of about 13.7%.