: UPS stock falls toward a 3-year low after revenue miss, lowered outlook
Shares of United Parcel Service Inc. UPS dropped 5% toward a three-year low in premarket trading Thursday, after the package delivery giant reported third-quarter topped profit expectations but missed on revenue and cut its full-year outlook, amid a slowing economy and negative effects of labor negotiations. Net income fell to $1.13 billion, or $1.31 a share, from $2.58 billion, or $2.96 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.57 beat the FactSet consensus of $1.52. Revenue fell 12.8% to $21.1 billion, below the FactSet consensus of $21.40 billion. Domestic package revenue declined 11.1% to $13.66 billion, to miss expectations of $13.74 billion, while international package revenue was down 11.1% to $4.27 billion and supply-chain and freight revenue fell 21.4% to $3.13 billion. For 2023, the company cut its revenue outlook to between $91.3 billion and $92.3 billion from about $93 billion. The stock has tumbled 20.3% over the past three months through Wednesday, while the Dow Jones Transportation Average DJT has dropped 16.4% and the Dow Jones Industrial Average DJIA has declined 7.0%.
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