The investing public has distanced itself from the stock market from United Parcel Service (UPS) after the publication of its report for the second quarter of 2024, where it revealed falls in its different financial lines and weak year-end expectations.
Since last Tuesday and until midday this Thursday, its shares had decreased by 11% , to reach a value of 128.95 dollars, against the 145 dollars that it previously registered on average.
UPS reported Tuesday that its revenue from April to June of this year totaled $21.8 billion, a 1.7% drop from $22.18 billion in the same period last year.
Likewise, its operating profit fell 30.1%, going from $2,780 million to $1,944 million. Meanwhile, net profit was $1,409 million , 32% less according to the comparison periods.
While diluted earnings per share were $1.65 for the quarter, adjusted diluted earnings per share of $1.79 were 29.5% below the same period in 2023.
“This quarter was a significant turning point for our company as we returned to volume growth in the United States, the first time in nine quarters. As expected, our operating profit decreased in the first half of 2024 from what we reported last year. Looking ahead, we expect to return to operating profit growth,” said UPS CEO Carol Tomé.
Under this scenario, the company forecasts that its revenues in 2024 will be $93 billion, versus the $94.5 billion previously expected, while capital expenditures will be $4 billion.
Likewise, it restarted the share buyback program for $1 billion annually, $500 million in 2024.
It is worth remembering that on July 22, UPS announced the acquisition of the Mexican Estafeta, a key piece of the American company’s “Better and Bolder” strategy, whose objective is to become the most important international logistics and small package provider in the world.
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