Shares of United Parcel Service Inc.
UPS,
sank 5.2% toward a two-month low in premarket trading Tuesday, after the package delivery giant reported fourth-quarter that fell below expectations, again, and provided a downbeat 2024 outlook, amid weakness in both the U.S. domestic and international businesses. Net income dropped to $1.61 billion, or $1.87 a share, from $3.45 billion, or $3.96 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.47 topped the FactSet consensus of $2.46. Revenue fell 7.8% to $24.92 billion, to miss the FactSet consensus of $25.40 billion, to mark the sixth-straight quarter that revenue missed forecasts. Among UPS’ business segments, U.S. domestic package revenue declined 7.3% to $16.92 billion, below the FactSet consensus of $17.39 billion, while international revenue was down 6.9% to $4.61 billion to miss expectations of $4.64 billion. Looking ahead, the company expects 2024 revenue of $92.0 billion to $94.5 billion, which is below the current FactSet consensus of $95.51 billion. The stock has gained 13.9% over the past three months through Monday, while the Dow Jones Transportation Average
DJT,
has rallied 15.3% and the Dow Jones Industrial Average
DJIA,
has advanced 16.4%.
