Startup Observer.com
  • Home
  • Industries
  • Innovation
  • outsourcing
  • Business
  • Finance
  • Headlines
  • Opinion
  • News
Home Headlines UPS shares fall as consumer caution dims e-commerce outlook
Headlines

UPS shares fall as consumer caution dims e-commerce outlook

by jcp April 26, 2022
April 26, 2022
gawdo

(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)

www.gawdo.com
Share on FacebookShare on TwitterShare on Linkedin
0 FacebookTwitterPinterestEmail
previous post
HSBC puts 2022 buyback ambitions on ice as inflation accelerates
next post
Oil rebounds from drop on China demand concerns

You may also like

Russian missiles rain down on Ukraine as West...

June 29, 2022

NATO deal with Turkey greeted with caution and...

June 29, 2022

Doctors, bankers protest ‘impossible situation’ as Sri Lanka...

June 29, 2022
Editorial & Advertiser disclosureEditorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. 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 may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. 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 sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
gawdo.com
https://www.gawdo.com
  • About us
  • Advertising & Terms of Use
  • Contact Us
  • Privacy Policy

@2021 - All Right Reserved.


Back To Top
Startup Observer.com
  • Home
  • Industries
  • Innovation
  • outsourcing
  • Business
  • Finance
  • Headlines
  • Opinion
  • News
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT