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<img width="1600" height="900" src="https://investorplace.com/wp-content/uploads/2022/06/ups-1600-1.png" alt="United Parcel Service (UPS) truck on Interstate in the American West. UPS stock.” width=”1600? height=”900? />Source: sladkozaponi / ShutterstockUnited Parcel Service (NYSE:UPS) stock is falling on Tuesday following the release of its earnings report for the second quarter of 2022.
Info in that earnings report shows that the company’s average daily volume for U.S. domestic deliveries decreased by 4% year-over-year. When covering the international average daily volume, deliveries were down 13.4%.
According to UPS, more than half of the drop in U.S. domestic deliveries was due to its own actions as it worked to optimize volume in its network. Even so, the decline is pulling down an otherwise solid earnings report.
UPS Stock Falls Despite Earnings Beats
For example, UPS reported adjusted earnings per share of $3.29 on revenue of $24.8 billion. Both of those beat out Wall Street’s estimates of $3.16 per share on revenue of $24.62 billion. They’re also up 7.5% and 5.7% year-over-year, respectively.
To go along with that, UPS also reaffirmed its outlook for the full year of 2022. That includes revenue of about $102 billion, as compared to analysts’ estimate of $102.11 billion. The company also announced an increase in 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 4.1% as of Tuesday afternoon.
There’s more hot stock news for traders to dive into below!
We’ve got all the latest stock market coverage investors need for Tuesday! That includes everything happening with shares of Faraday Future Intelligent Electric (NASDAQ:FFIE), Nio (NYSE:NIO), and Mercury Systems (NASDAQ:MRCY) stock. You can read up on that news at the following links!
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- Mercury Systems (MRCY) Stock Falls on New Short Report
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.
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