United Parcel Service (NYSE:UPS) on Tuesday morning reported fourth-quarter revenue that missed Wall Street’s expectations and declined from last year, as the company continues to see volume decline amid cooling demand.
Adjusted earnings per share came in at $3.62 vs $3.59 expected by experts.
Total revenue: $27.03 billion vs $28.09 billion.
For the three-month period ended Dec. 31, the company reported adjusted net income of $3.15 billion, or $3.62 per share, compared with $3.15 billion, or $3.59 per share, a year earlier.
The company on Tuesday offered full-year guidance that fell below analyst’s expectations. It is projecting revenue between $97 billion and $99.4 billion, versus analyst’s estimates of $99.98 billion.
Since taking the helm in 2020, CEO Carol Tomé has been championing a “Better not Bigger” business strategy, focusing on high-margin shipments rather than just boosting volume. That strategy was put to the test last quarter as volume declines weighed on revenue.
In the fourth quarter, revenue for UPS’s domestic segment, which makes up about two-thirds of the company’s revenue and most of its business-to-consumer transactions, grew 3%. Revenue from international shipping decreased 8%, due to volume reductions and softening demand in China.
Its supply chain business saw revenue dip 18% with volume decreasing in its freight forwarding business, though it was partially offset by its healthcare segment.
UPS shares ballooned $6.32, or 3.6%, to $183.29.
