Shares of United Parcel Service (UPS) sank 10% in premarket trading Thursday after the shipping giant reported worse-than-expected fourth-quarter results.
The company reported net income of $1.72 billion, or $2.01 per share, on $25.3 billion in revenue. Analysts had expected profit of $2.14 billion, or $2.51 per share, on revenue of $25.35 billion, per Visible Alpha.
After stripping out $639 million in charges that were mostly related to pensions, UPS reported adjusted earnings per share (EPS) of $2.75, above the $2.51 per share analysts had expected.
The results marked a second straight quarter of year-over-year revenue and profit growth for UPS, which—like shipping rival FedEx (FDX)—saw several quarters of declines following record demand during the pandemic.
UPS Issues 2025 Revenue Outlook Below Estimates
UPS expects 2025 revenue to be roughly $89 billion, below the more than $95 billion analysts had projected. The firm also said it is starting “multi-year ‘efficiency reimagined’ initiatives” that are expected to generate about $1 billion in savings.
UPS shares entered Thursday down about 15% over the last 12 months.