UPS Stock Opens at 3-Year Low After Outlook Trim

By Dean Seal

Shares of United Parcel Service fell to a three-year low after the company trimmed its revenue outlook for the year even as domestic shipping volume returned to growth.

The stock opened at $130.14 and continued to trend lower in early trading. Shares haven't traded this low since the summer of 2020.

The Atlanta-based package deliverer said Tuesday morning that revenue slid 1.1% during the second quarter to $21.8 billion. Analysts polled by FactSet had been expecting the top line to edge higher.

Domestic revenue was down due to changes in product mix, though Chief Executive Carol Tomé said the company had returned to volume growth in the U.S. but volumes in its smaller international business declined.

UPS narrowed its revenue outlook for the year to $93 billion from a prior range of $92 billion to $94.5 billion.

Quarterly profit fell to $1.41 billion from $2.08 billion a year ago, while adjusted earnings of $1.79 a share missed analyst forecasts by 20 cents, according to FactSet.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

July 23, 2024 10:10 ET (14:10 GMT)

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