Category: UPS News

After two consecutive years of problems during its holiday peak package season, UPS delivered on time at Christmas this year while its main rival FedEx had a last-minute stumble that left some gifts undelivered until after the holiday.

“It seems like the third time’s a charm for UPS,” said Kent Winegar, portfolio manager at Austin, Texas-based Terry McDaniel & Co, which manages assets of around $900 million and holds nearly $15 million in UPS stock. “But if e-commerce keeps growing at such a rapid rate we’ll see how they do next year.”

UPS CEO David Abney said he is “very comfortable” with his company’s relationship with Amazon.com, one week after The Wall Street Journal reported the relationship between the two had come under stress.

The report raised the possibility of Amazon emerging as a rival to UPS in a bid to process rising package volumes and offset higher shipping costs.

But Abney dismissed the notion that UPS’ customers would be better off going it alone.

The package delivery giant has fallen behind its long-term guidance in 2016. Will it continue?

Most investors in United Parcel Service will be hoping for a successful holiday season after having been disappointed in the past two years. However, the company’s long-term financial targets also deserve scrutiny. In a nutshell, UPS is falling behind its five-year targets and has some catching up to do. Will it be forced to reduce its financial targets, and does it really matter?