United Parcel Service (NYSE:UPS) on Tuesday reported profit and revenue for the second-quarter that came in below expectations and cut its 2024 revenue guidance.
UPS now expects 2024 revenue to be approximately $93 billion, revised from a previous forecast for as much as $94.5 billion. Full-year capital expenditures, however, is now expected at around $4 billion, rather than the previous $4.5 billion.
The company also announced it’s targeting around $500 million in share repurchases in 2024.
UPS noted that the guidance does not include the impacts of the recently announced sale of its trucking business Coyote Logistics to RXO Logistics. The transaction is expected to close by the end of the year.
The company also recently entered into an agreement to acquire Mexican express delivery company Estafeta, as it continues to expand its international presence.
The company’s reported net income for the quarter was $1.41 billion, or $1.65 cents per share, compared with $2.08 billion, or $2.42 per share, a year earlier. Adjusting for the impact of settling an “international regulatory matter,” UPS reported earnings of $1.79 per share.
The company also reported operating profit of $1.94 billion, down from $2.78 billion a year earlier.
UPS shares faltered $17.52, or 12.1%, to $127.66.
