Barclays take on UPS (why the world is going to doo doo imo)

Discussion in 'UPS Discussions' started by HubBub, Jan 26, 2015.

  1. HubBub

    HubBub Active Member

    "Barclays analysts note that despite the fact that UPS is outgrowing FedEx, it is not able to convert that growth into EPS – meaning that the company is trading at a lower price and profitability.

    Barclays analysts point to UPS’s obsessive, customer-first mentality as the problem.

    “We are concerned the relentless focus on maintaining service and share with competitors could leave profitability in a lurch beyond the next few quarters,” the note said."
  2. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.


    It's because we are an old company. Amazon spends more than they make every quarter for growth and servicing customers. Yet they are loved.
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  3. 3 done 3 to go

    3 done 3 to go In control of my own destiny

    For some reason the market loves fed ex. They can do no wrong. Ups is the red headed step child. Always blamed for poor fed ex
  4. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    Well paid Union labor probably has a lot to do with that. Add on the FedEx "independent contractor" model and I understand why Wall Street loves them.
  5. 3 done 3 to go

    3 done 3 to go In control of my own destiny

    With all the trucks going to the same houses. I don't see how they can make money? Separate books. Cost effective. I can't see it as it is
  6. joeboodog

    joeboodog good people drink good beer

    Being customer driven is a negative? Seriously? Customers may not sign the paycheck but they make sure the funds are there to cover it.
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  7. brownmonster

    brownmonster Man of Great Wisdom

    Since when are we customer driven?
  8. PiedmontSteward

    PiedmontSteward RTW-4-Less

    Amazon is literally hemorrhaging cash every quarter and they're considered a top-level Wall Street prodigy.

    UPS (to their credit) pulled out all the stops to make sure Peak 2013 doesn't happen again and they take a beatdown for being less profitable.. which means we're going to take a beatdown for UPS being less profitable. We're already seeing it in the building (write-ups for any supervisors allowing a part-timer to hit time and a half, no OT for the maintenance guys, etc.)
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  9. sortaisle

    sortaisle Livin the cardboard dream

    I think I don't care. Next peak will be right back to what we did before with next to no help. UPS is hardly stupid (well...Wall Street stupid anyway) and their profits are still there. The idea of losing profits is ridiculous. They still are going to profit in the multi billions this quarter.
  10. Returntosender

    Returntosender Well-Known Member

    Perhaps UPS should follow Apple. Give low ball earnings estimates than over deliver on earnings.
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  11. Wally

    Wally Hailing from Parts Unknown.

    I predict fifty years from now, Barclays analysts will credit UPS’s obsessive, customer-first mentality as the reason for their long term success.
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  12. The Blackadder

    The Blackadder Are you not amused?

    I would not worry about customer-first mentality, once everyone gets Orion all that matters is miles and trace. The customer if they are lucky will be in the top 3
  13. oldngray

    oldngray nowhere special

    UPS doesn't have the fanatics like Amazon and Apple do who are loyal despite what the numbers show. UPS has to survive on real world earnings. And that incentive to please the stockholders at the expense of everything else the company once stood for is slowly destroying UPS. The decline started when the stock went public and control shifted to outsiders who don't care about the delivery business or providing service to customers.
  14. Bottom rung

    Bottom rung Active Member

    Wait until they release earnings from when the dim weight pricing started.
  15. ViewAskew

    ViewAskew Active Member

    This. I've seen a couple of long time, smaller shippers leave us this month because of this.
  16. Overpaid Union Thug

    Overpaid Union Thug Well-Known Member

    If we could get a CEO that truly believes in customer service FIRST and not expensive and unreliable new technology then UPS would be the envy of all others.
  17. Packmule

    Packmule Well-Known Member

    If we could just see the value in not making promises we can't keep-- and more importantly--allowing shippers to make promises we can't keep, we could win this game.
  18. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    To who? FedEx is doing it also.

    It makes sense to me. The more room your package takes up the more it should cost. Same reason I am all
    For hiking prices at peak time. When demand is high prices go up.
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  19. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    This would be like jacking up the prices on generators during an extended weather emergency.

    There is a term for that----price gouging.
  20. Turdferguson

    Turdferguson Guest

    Huge difference between an emergency price gouging and someone waiting to the last minute to ship a Christmas present. Ordering stuff online and have it shipped to you is a luxury not something you need
    Lasted edited by : Jan 27, 2015