UPS drops most in seven months as margin outlook comes up short
by Bloomberg Jun 09, 2021
United Parcel Service Inc. fell the most in seven months after the courier forecast profit margins that fell shy of expectations.
U.S. domestic adjusted operating margins will be between 10.5% and 12% in 2023, the company said Wednesday as it outlined it’s three-year financial plan. Investors had been expecting about 13%, according to analysts who surveyed shareholders before the presentation.
UPS didn’t provide an earnings forecast or offer a cost-cutting plan, which also weighed on the stock.
The shares dropped 5.5% to $198.26 at 11:27 a.m. in New York after tumbling as much as 6.1%, the most intraday since Oct. 28. UPS had gained 25% this year through Tuesday while the S&P 500 rose 13%.
Chief Executive Officer Carol Tome, who assumed her role a year ago, has adopted a “better not bigger” strategy to drive margins higher. The Atlanta-based company is using new technologies to win over small customers that tend to pay full price for delivery while larger clients often command discounts.
Bloomberg
© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).
Similar Stories
Inauguration of the Fly’in technology center: Daher paves the way for the future of decarbonized aviation
View ArticleHorizon Aircraft signs Letter of Intent with Discovery Air Chile Ltda., expanding global presence of Cavorite X7 Hybrid eVTOLs
New Horizon Aircraft Ltd. (NASDAQ: HOVR), doing business as Horizon Aircraft (“Horizon Aircraft” or the “Company”), a leading hybrid electric Vertical Take-Off and Landing (“eVTOL”) aircraft developer, announced today it…
View ArticleFlexiVan appoints new Chief Commercial Officer and new Chief Operating Officer
Flexi-Van Leasing, LLC (FlexiVan) announces the appointment of Chadwick (Chad) Heller, as its new Chief Commercial Officer, and Keith Saunders, as its new Chief Operating Officer.
View Article
WorldACD Weekly Air Cargo Trends (week 1) - 2025
View ArticleINVESTING IN AMERICA: Biden-Harris Administration announces $635 Million to continue expanding zero-emission EV charging and refueling infrastructure
New investments from the Bipartisan Infrastructure Law will add more than 11,500 electric vehicle charging ports and expand hydrogen and natural gas fueling infrastructure in communities nationwide
View Article
Averitt opens new Dothan, AL service center
View ArticleGet the most up-to-date trending news!
SubscribeIndustry updates and weekly newsletter direct to your inbox!
Follow us on social media:
