A United Parcel Service worker delivers packages in NEW YORK.
Stephanie Keith | Getty Images
Shares of United Parcel Service fell Tuesday morning following the company said higher rates offset lower-than-expected delivery volumes in the next quarter.
The Atlanta-based company said volumes declined and fell lacking its forecast by 222,000 packages each day. It attributed the miss partially to reductions in its contracts with customers like Amazon.
“We project by the finish of the year that Amazon revenue will undoubtedly be significantly less than 11% of our total revenue,” said CEO Carol B. Tome, noting that UPS decided to a level which makes sense for this and will supply the company room to cultivate in the areas.
UPS stood by its full-year financial outlook after posting earnings and revenue that topped Wall Street expectations.
The business’s stock closed down about 3% at $181.53.
For the quarter, the business reported adjusted earnings of $3.29 per share, that was a lot more than the $3.16 per share analysts expected. Revenue for the time was $24.77 billion, also topping the $24.63 billion Wall Street expected.
The strong dollar hurt UPS international business, reducing international revenue by $261 million and profits by $60 million.
For the next half of the entire year, Chief Financial Officer Brian Newman said that the business anticipates that volume growth rates “will improve slightly” with full-year GDP growth likely to slow.
The business reaffirmed its outlook for full-year revenue of $102 billion and adjusted operating margin around 13.7%.