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United Parcel Service (NYSE:UPS) Stock Price Down 8.2% on Disappointing Earnings

United Parcel Service logo with Transportation background

Key Points

  • United Parcel Service (UPS) shares fell 8.2% to $93.28 following a disappointing earnings report that showed earnings per share of $1.55, missing estimates by $0.02.
  • The company's quarterly revenue decreased by 2.7% year-over-year, and it has a high dividend payout ratio of 95.63%, with an annual dividend yield of 7.12%.
  • Analyst ratings reflect a consensus of "Hold" with several downgrades on price targets, indicating mixed sentiment regarding the stock's future performance.
  • MarketBeat previews the top five stocks to own by August 1st.
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United Parcel Service, Inc. (NYSE:UPS - Get Free Report)'s share price was down 8.2% during mid-day trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $93.57 and last traded at $93.28. Approximately 2,690,163 shares traded hands during mid-day trading, a decline of 54% from the average daily volume of 5,891,785 shares. The stock had previously closed at $101.58.

The transportation company reported $1.55 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.56 by ($0.01). United Parcel Service had a return on equity of 39.61% and a net margin of 6.34%. The firm had revenue of $21.20 billion for the quarter, compared to the consensus estimate of $20.90 billion. During the same quarter last year, the company posted $1.79 EPS. United Parcel Service's revenue for the quarter was down 2.7% on a year-over-year basis.

United Parcel Service Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Monday, May 19th were paid a dividend of $1.64 per share. This represents a $6.56 dividend on an annualized basis and a dividend yield of 7.52%. The ex-dividend date was Monday, May 19th. United Parcel Service's dividend payout ratio is presently 95.63%.

Wall Street Analysts Forecast Growth

UPS has been the topic of several research analyst reports. Loop Capital lowered their price target on shares of United Parcel Service from $115.00 to $105.00 and set a "hold" rating on the stock in a report on Wednesday, April 30th. DA Davidson reduced their price target on United Parcel Service from $154.00 to $150.00 and set a "neutral" rating for the company in a research note on Wednesday, April 30th. Wells Fargo & Company lowered their price target on shares of United Parcel Service from $98.00 to $91.00 and set an "equal weight" rating on the stock in a research report on Wednesday. Bernstein Bank boosted their price objective on shares of United Parcel Service from $132.00 to $133.00 in a report on Wednesday, April 30th. Finally, JPMorgan Chase & Co. decreased their target price on shares of United Parcel Service from $110.00 to $107.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 8th. Two investment analysts have rated the stock with a sell rating, seventeen have assigned a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $113.38.

Read Our Latest Stock Analysis on UPS

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Pinney & Scofield Inc. purchased a new stake in United Parcel Service in the 4th quarter valued at $27,000. Fourth Dimension Wealth LLC bought a new stake in shares of United Parcel Service in the fourth quarter valued at approximately $28,000. Graybill Wealth Management LTD. bought a new position in shares of United Parcel Service in the first quarter worth $26,000. Marshall & Sterling Wealth Advisors Inc. bought a new stake in shares of United Parcel Service during the fourth quarter valued at about $31,000. Finally, Citizens National Bank Trust Department boosted its holdings in United Parcel Service by 525.0% in the 1st quarter. Citizens National Bank Trust Department now owns 250 shares of the transportation company's stock valued at $27,000 after purchasing an additional 210 shares during the period. Institutional investors and hedge funds own 60.26% of the company's stock.

United Parcel Service Price Performance

The business has a 50 day simple moving average of $99.75 and a two-hundred day simple moving average of $106.69. The firm has a market capitalization of $73.84 billion, a P/E ratio of 12.98, a price-to-earnings-growth ratio of 1.75 and a beta of 1.21. The company has a debt-to-equity ratio of 1.51, a quick ratio of 1.09 and a current ratio of 1.32.

United Parcel Service Company Profile

(Get Free Report)

United Parcel Service, Inc, a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of express letters, documents, small packages, and palletized freight through air and ground services in the United States.

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