UPS earnings: How much will Prime packages cut into margins? - Marketwatch
Free overnight toothpaste is great for consumers, but a profit-killer for UPS
United Parcel Service Inc. will report second-quarter earnings on Thursday before the market opens, and analysts will be focused on whether the company’s big spending plans are paying off as it seeks to capitalize on the growth in e-commerce.
As the primary shipping partner of Amazon UPS benefits from rising package volumes, but has been losing money on more costly deliveries to consumers’ homes.
“The last mile is outrageously expensive,” Logan Purk, an Edward Jones analyst, told MarketWatch, because individual consumer deliveries are smaller, less densely-concentrated, and often less accessible than deliveries to businesses.
Free overnight toothpaste is great for consumers, but a profit-killer for UPS
United Parcel Service Inc. will report second-quarter earnings on Thursday before the market opens, and analysts will be focused on whether the company’s big spending plans are paying off as it seeks to capitalize on the growth in e-commerce.
As the primary shipping partner of Amazon UPS benefits from rising package volumes, but has been losing money on more costly deliveries to consumers’ homes.
“The last mile is outrageously expensive,” Logan Purk, an Edward Jones analyst, told MarketWatch, because individual consumer deliveries are smaller, less densely-concentrated, and often less accessible than deliveries to businesses.
