UPS Performance Overview
United Parcel Service (UPS) (NYSE: UPS), has seen its stock decline from a high of $192.88 in February 2022 to approximately $100 today. This represents a significant drop in investor confidence, tied to stiff competition, especially from FedEx (NYSE: FDX), labor negotiations, and macroeconomic challenges that have impacted shipping volumes across various sectors.
Key metrics reveal UPS’s struggles: average daily package volume decreased from 25.25 million in 2021 to 22.29 million in 2023, while total revenue is projected to decline to $90.96 billion in 2023, down from $97.29 billion in 2021. Additionally, EPS dropped from $14.68 in 2021 to an estimated $7.80 in 2023.
Looking ahead, analysts forecast a 3% decline in revenue and a 4% drop in EPS for 2025. The company is implementing strategies such as reducing lower-margin orders and investing in logistics technology in hopes of stabilizing its business. However, these changes may result in short-term revenue losses before potential recovery.
