UPS (NYSE:UPS) shares dropped around 8% in pre-market today following the company’s announcement of lower-than-expected second-quarter earnings and revenue for 2024.
The logistics giant reported adjusted EPS of $1.79, which fell short of the $2.00 anticipated by analysts and represented a significant 29.5% decline from the $2.54 recorded in the same period last year. Revenue also experienced a slight decline, decreasing by 1.1% to $21.8 billion, missing the Street estimate of $22.17 billion.
In the U.S. Domestic Segment, revenue dropped by 1.9%, influenced by a 2.6% decrease in revenue per piece due to shifts in product mix. The International Segment also saw a revenue decline of 1.0%, primarily driven by a 2.9% drop in average daily volume. Conversely, the Supply Chain Solutions segment reported a 2.6% increase in revenue, mainly attributed to growth in logistics, including healthcare.
Looking forward, UPS revised its full-year 2024 financial guidance, now expecting revenue to be around $93.0 billion, slightly above the Street estimate of $92.8 billion.