The stock of United Parcel Service (UPS) is down 5% after the world's largest delivery and logistics company lowered its forward guidance, citing weak demand for its services.
For the final quarter of 2023, UPS reported earnings per share (EPS) of $2.47 U.S., which was slightly ahead of Wall Street forecasts of $2.46 U.S.
Revenue in Q4 2023 totaled $24.92 billion U.S., missing the consensus expectation among analysts of $25.40 billion U.S. and marking the sixth-straight quarter that revenue missed expectations. Sales were down nearly 8% from a year ago.
Among its various business segments, U.S. domestic package revenue declined 7.3% to $16.92 billion U.S., while international revenue was down 6.9% to $4.61 billion U.S.
In terms of forward guidance, UPS said that it expects 2024 revenue of $92 billion U.S. to $94.50 billion U.S., which is below Wall Street forecasts of $95.57 billion U.S.
The company said that it is struggling with weak demand, particularly among e-commerce shipments, which is pressuring its earnings.
Prior to today (Jan. 11), the stock of UPS had declined 11% in the last 12 months to trade at $158.02 U.S. per share.
