UPS stock suffers biggest drop in 2 years as e-commerce surge is still causing problems

cheryl

I started this.
Staff member
UPS stock suffers biggest drop in 2 years as e-commerce surge is still causing problems - Marketwatch

Profit and revenue miss expectations, as a bigger-than-expected surge in e-commerce sales came at a cost.

Shares of United Parcel Service suffered Tuesday their biggest one-day selloff in two years, as disappointing fourth-quarter results suggest the package-delivery giant was still having trouble adapting to the surge in online holiday shopping.

The results were also a stark reminder that not all business is good business.
 

gman042

Been around the block a few times
I will say it again.....
The infrastructure of the company is not able to withstand the amount of volume.
UPS will need to expand its ability to handle the volume. Nearly all buildings are too small.
 

bbsam

Moderator
Staff member
I think this is a "breaking point" of sorts for the company. I talked to one of my former drivers at 5 pm one peak evening and now working for UPS he still had 130 stops left.

It's hard to see how the company can squeeze more production out of drivers and they aren't going to make a habit of disappointing stockholders so the next contract should prove interesting.
 

Tired Driver

Sisyphus had it easy.
Upper Management in Atlanta needs to be fired for not meeting their numbers. History has shown that they have had great numbers in the past. Their are locked in to those numbers.
 

Scuba_Steve

Well-Known Member
UPS Stock Upgraded: What You Need to Know
Let's start with the news that sparked the sell-off in UPS stock, which in turn led to today's upgrade. On Jan. 31, UPS reported its financial results for fiscal 2016. Earnings per share declined 28% in comparison to fiscal 2015, falling to $3.87 per share, after charges related to revaluing the pension fund subtracted $1.88 from UPS' take. Absent those charges, UPS' earnings per share would actually have risen 6% -- slightly ahead of revenue gains of 4.4%.

Back out the pension charge, therefore, and UPS actually showed some improvement last year, and turned in earnings that, while at the low end of guidance, at least fit within the guidance range that management had announced prior to earnings.

So, it was strictly a charge due to the pension funds issues.

This has zero to do with any of the MIP factors, or the performance of the employees, or peak or anything else operational.

Then combined with today's announcement of raising the dividend 5 cents a share to .83 cents and it sure kinda sounds like MIP got screwed for almost no reason.
 
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