Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Home Headlines UPS shares fall as consumer caution dims e-commerce outlook
2022 04 26T101009Z 1 LYNXNPEI3P0ED RTROPTP 4 UKRAINE CRISIS COMPANIES

UPS shares fall as consumer caution dims e-commerce outlook

by Jessica Weisman-Pitts
0 comments

(Reuters) -United Parcel Service Inc on Tuesday reported better-than-expected quarterly earnings, but shares fell 3% after executives said they expected e-commerce delivery growth – which drove its pandemic business – to cool this year.

UPS now expects volume in its biggest U.S. business to fall in the first half of 2022 before improving in the latter part of the year.

“We’re not going to see the kind of (e-commerce) growth that we experienced during COVID, but ecommerce sales will continue to grow,” Chief Executive Officer Carol Tome said on a conference call with analysts.

Executives said higher shipping rates, fuel surcharges and more large and small business deliveries would offset softer demand for residential e-commerce package drops – as they did in the first quarter.

Atlanta-based UPS reiterated its 2022 outlook for revenue of about $102 billion and adjusted operating margin of roughly 13.7%. It also announced plans to double its 2022 share buy-back target to $2 billion. Still, shares fell $5.72 to $183.92 in early trading.

Results from UPS came almost two weeks after the Commerce Department reported back-to-back declines in e-commerce sales for February and March. Pandemic-weary consumers shifted some spending from goods to services in response to the United States lifting COVID prevention measures. At the same time, record gas prices bit into disposable income.

During the first quarter, average daily volume in the UPS domestic business fell 3% – driven by a 7.4% drop in residential deliveries. COVID variant outbreaks, record gas prices and political uncertainty fueled by Russia’s war on Ukraine drove the decline from last year’s stimulus check-fueled volume boom, executives said.

Still, UPS reported first-quarter adjusted earnings of $3.05 per share on revenue of $24.4 billion. Those results topped analysts’ average targets for earnings of $2.88 per share and revenue of $23.78 billion.

(Reporting by Kannaki Deka in Bengaluru and Lisa Baertlein in Los Angeles; Editing by Shounak Dasgupta, Anil D’Silva and Lisa Shumaker)

Recent Post
Illustration of a woman with long black hair and wearing white round earrings. She is smiling and dressed in a red top, set against a light pink background.

Jesse Pitts has been with the Global Banking & Finance Review since 2016, serving in various capacities, including Graphic Designer, Content Publisher, and Editorial Assistant. As the sole graphic designer for the company, Jesse plays a crucial role in shaping the visual identity of Global Banking & Finance Review. Additionally, Jesse manages the publishing of content across multiple platforms, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.