UPS Suffers Q3 Revenue Drop, Lowers Guidance Due To Unfavorable Macro Conditions
Portfolio Pulse from Akanksha Bakshi
United Parcel Service Inc (UPS) reported a Q3 fiscal 2023 revenue decline of 12.8% YoY to $21.06 billion, missing the consensus of $21.45 billion. Adjusted EPS was $1.57, down from $2.99 in 3Q22, beating the consensus of $1.52. The company lowered its FY23 consolidated revenue and adjusted operating margin targets due to global macroeconomic uncertainty. UPS also bought Happy Returns from PayPal (PYPL) for an undisclosed price.
October 26, 2023 | 2:56 pm
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NEUTRAL IMPACT
UPS bought Happy Returns from PayPal for an undisclosed price. This acquisition is expected to expand UPS's returns footprint and enhance digital solutions for shippers and consumers.
The sale of Happy Returns to UPS is likely to have a neutral impact on PayPal's stock price in the short term as the price was undisclosed and it's unclear how significant Happy Returns was to PayPal's overall business.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
UPS reported a Q3 revenue decline and lowered its FY23 targets due to global macroeconomic uncertainty. The company's shares are trading lower by 4.72% premarket.
The reported Q3 revenue decline and lowered FY23 targets indicate a negative outlook for UPS, which is likely to impact the company's stock price negatively in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100