UPS Stock Gains on Earnings Even as Amazon Breathes Down Its Neck - Barrons
United Parcel Service stock (UPS) is jumping after its fourth-quarter earnings report. The delivery giant notched a better-than-expected profit, which helped to outweigh guidance that came in on the light side.
The Back Story. With armies of trucks and deliverymen hitting the streets over the holiday season, the casual observer might assume that it’s a great time to be a logistics provider, as more shopping shifts online, resulting in a greater volume of packages. Yet both UPS and rival FedEx (FDX) had a tough 2018. Higher oil prices were part of the problem, at least earlier in the year, but the main issue was that increased package volume.
United Parcel Service stock (UPS) is jumping after its fourth-quarter earnings report. The delivery giant notched a better-than-expected profit, which helped to outweigh guidance that came in on the light side.
The Back Story. With armies of trucks and deliverymen hitting the streets over the holiday season, the casual observer might assume that it’s a great time to be a logistics provider, as more shopping shifts online, resulting in a greater volume of packages. Yet both UPS and rival FedEx (FDX) had a tough 2018. Higher oil prices were part of the problem, at least earlier in the year, but the main issue was that increased package volume.
