United Parcel Service (NYSE:UPS) stock is falling on Tuesday following the release of its earnings report for the second quarter of 2022.
Info in the report shows that the company’s average daily volume for U.S. domestic deliveries decreased by 4% year-over-year (YOY). When covering the international average daily volume, domestic deliveries were down 13.4% (Page 16).
According to UPS, more than half of the drop in U.S. domestic deliveries was due to its own actions as the company worked to optimize volume in its network. Even so, the decline is pulling down an otherwise solid earnings report for UPS.
UPS Stock Falls Despite Earnings Beats
For the period, UPS reported adjusted earnings per share (EPS) of $3.29 on revenue of $24.8 billion. Both of these figures beat out Wall Street’s estimates of $3.16 per share on revenue of $24.62 billion. EPS and revenue also climbed 7.5% and 5.7% YOY, respectively.
In the report, UPS also reaffirmed its outlook for full-year 2022. This includes revenue of about $102 billion, as compared to the average analyst estimate of $102.11 billion. Finally, the company also increased its targeted share repurchases for 2022 to $3 billion.
Carol Tomé, CEO of UPS, said the following in the earnings report:
“I want to thank UPSers around the world for delivering outstanding service to our customers […] While the external environment is ever changing, our better not bigger strategic framework has fundamentally improved nearly every aspect of our business, enabling greater agility and strong financial performance.”
UPS stock is down 4% as of Tuesday afternoon.
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On the date of publication, William White did not hold (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.
