United Parcel Service (NYSE:UPS) stock is taking a beating on Tuesday following the release of its earnings report for the second quarter of 2021.
Let’s take a look at what has UPS stockholders upset in the most recent earnings report below
- The problem for UPS stock has to do with its shipping volumes.
- According to the report, global shipping volumes were down .8% year-over-year.
- To make matters worse, shipping volumes in the U.S. saw a 2.9% decrease from the same time last year.
- In addition to this, UPS notes that residential shipments were down 15.8% from the second quarter of 2020.
- UPS and rival FedEx (NYSE:FDX) have both been dealing with delivery troubles lately.
- That’s due to the economy rebounding from the pandemic and constraints to supply lines.
- All of this negative shipment news hampered an otherwise strong earnings report for the company.
- That includes adjusted earnings per share of $3.06 on revenue of $23.4 billion.
- Both of these came in above analysts’ estimates of $2.81 per share and revenue of $23.24 billion for the quarter.
- Even so, it wasn’t enough to save the company from today’s decline.
- The falling share price for UPS stock also comes alongside heavy trading.
- As of this writing, more than 8 million shares of the stock have changed hands.
- That’s already well above the company’s daily average trading volume of around 3.5 million shares.
UPS stock was down 8.2% as of Tuesday afternoon but is up 17.6% since the start of the year.
Investors hungry for more stock market news will want to stick around!
InvestorPlace offers up the latest coverage of the stock market with our daily dives into the biggest stories. A few examples from today include why stocks are down today, what has Orbsat (NASDAQ:OSAT) on the rise, as well as why shares of Workday (NASDAQ:WDAY) are falling. You can learn all about that at the links below!
More Stock Market News for Tuesday
- Midday Market Update: Why Are Stocks Down Today?
- OSAT Stock: What Are Retail Investors Saying About Orbsat Today as Shares Surge
- WDAY Stock: The Amazon News That Has Workday Shares Slipping Today
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.