Shares of shipping and logistics company UPS (NYSE: UPS) slumped at the time of writing on Tuesday after the company updated its FY23 outlook and now expects revenues to be about $93 billion versus consensus estimates of $96.59 billion and has forecasted an adjusted operating margin of around 11.8%.
The company stated in its press release that the reason for the updated guidance is “to reflect the volume impact from labor negotiations and the costs associated with the tentative agreement reached with the International Brotherhood of Teamsters on July 25, 2023.”
UPS reported Q2 adjusted earnings of $2.54 per share as compared to $3.29 per share in the same period last year and above consensus estimates of $2.49 per share. The company posted revenues of $22.1 billion, a decline of 10.9% year-over-year but fell short of Street estimates of $23.01 billion.
Overall, Wall Street analysts are cautiously optimistic about UPS stock with a Moderate Buy consensus rating based on seven Buys, six Holds, and one Sell.
