United Parcel Service shares rallied after posting mixed results but closed red. 🔻
The company’s adjusted earnings per share of $2.99 beat the $2.84 expected. Meanwhile, revenues came in light at $24.16 vs. the $24.30 billion expected.
The company reiterated what it and FedEx said in previous quarters, that volumes are down, but they’re making it up in price. UPS plans to increase its shipping rates by 6.9% on December 27th as inflation pushes up its service costs. The companies are also pulling back their operations, with UPS reducing its expected capital expenditures from $5.5 billion to $5 billion.
Growth in its logistics and healthcare businesses helped offset the slowdown in freight forwarding, but UPS still expects volumes for the holiday season to be lower than last year. 📦
Overall, the report didn’t tell investors much they haven’t heard already (hence the title of our post).
The company did, however, reaffirm its full-year guidance for $102 billion in revenue and adjusted operating margins of 13.7%.
Shares of $UPS initially rallied early in the session but faded throughout the day. 👎
