UPS boosted its volume in the U.S. for the first time since 2022 during its second quarter, but profit and revenue fell short of Wall Street expectations, partly due to a hefty charge.
Shares dropped more than 13% at the opening bell Tuesday.
CEO Carol Tome said the package delivery company returned to volume growth in the U.S. during the quarter for the first time in nine quarters.
“This quarter was a significant turning point for our company," Tome said in a prepared statement.
Total U.S. domestic package volume edged up in the quarter thanks to an improvement in ground deliveries.
For the three months ended June 30, United Parcel Service Inc. earned $1.41 billion, or $1.65 per share.
Stripping out one time costs, earnings were $1.79 per share. This was well below the $1.98 per share that analysts polled by Zacks Investment Research were calling for.
UPS said that the quarter included a charge of $120 million, or 14 cents per share, made up of of a one-time payment of $94 million to settle an international regulatory matter. The period also included transformation and other charges totaling $26 million.
Total operating expenses increased about 3% in the quarter, which included a 2.7% rise in expenses tied to compensation and benefits.
In September the Teamsters voted to approve a tentative contract agreement with UPS, putting a final seal on contentious labor negotiations that threatened to disrupt package deliveries for millions of businesses and households nationwide. The contract included pay raises for full- and part-time union workers.
Quarterly revenue was $21.82 billion, short of Wall Street’s estimate of $22.31 billion.
The Atlanta company now anticipates full-year revenue of about $93 billion. Its previous outlook was for revenue in a range of approximately $92 billion to $94.5 billion.
Analysts surveyed by FactSet expect revenue of $92.77 billion.
FILE - A delivery vehicle passes by a UPS depot, June 29, 2023, in New York. (AP Photo/John Minchillo, File)
MIAMI (AP) — Otto López was a triple shy of the cycle, Connor Norby homered and drove in three runs, and the Miami Marlins snapped NL East-leading Philadelphia’s six-game winning streak with a 9-5 victory over the Phillies on Saturday.
Jonah Bride also homered, while Xavier Edwards and Nick Fortes had two hits each for the Marlins, who had 14 hits a day after losing 16-2 to the Phillies.
John McMillon (2-1) pitched 1 1/3 innings of scoreless relief for the win.
Phillies starter Aaron Nola (12-7) was lifted after he allowed five runs and nine hits over 4 2/3 innings, walking two and striking out five. It was his shortest start since allowing eight runs and 11 hits in 3 1/3 innings against Boston on June 13.
Bride homered to lead off the fifth and put Miami ahead 5-3 and Jesús Sánchez added an RBI single in the sixth.
The Marlins padded their lead with a three-run seventh against former starter Taijuan Walker. López hit a solo homer over the center field wall in the inning and two runs scored on shortstop Trea Turner's throwing error.
Philadelphia's Kyle Schwarber hit a tying sacrifice fly in the third inning for his 93rd RBI of the season.
Norby hit a two-run homer in the first to put Miami ahead 2-1.
Marlins starter Darren McCaughan allowed three runs and six hits in 4 2/3 innings. The right-hander struck out four.
TRAINER’S ROOM
Phillies: Manager Rob Thomson said catcher J.T. Realmuto has some swelling but will remain with the club as he recovers from a left knee contusion sustained Friday. The Phillies selected the contract of catcher Aramis Garcia from Triple-A Lehigh Valley and designated RHP Nick Nelson for assignment.
Marlins: Placed RHP Max Meyer (right shoulder bursitis) and RHP Calvin Faucher (right shoulder impingement) on the 15-day injured list and OF Derek Hill (right shoulder impingement) on the 10-day injured list. ... LHP Andrew Nardi (left elbow muscle) was transferred to the 60-day injured list.
UP NEXT
RHP Seth Johnson will make his major league debut when he starts the series finale for the Phillies on Sunday. The Marlins have not announced a starter but manager Skip Schumaker said RHP Edward Cabrera could get the nod when he cleared all tests after he withdrew from his scheduled start Friday because of migraine-like symptoms.
AP MLB: https://apnews.com/MLB
Miami Marlins starting pitcher Darren McCaughan (68) aims a pitch during the first inning of a baseball game against the Philadelphia Phillies, Saturday, Sept. 7, 2024, in Miami. (AP Photo/Marta Lavandier)
Philadelphia Phillies' Bryson Stott (5) hits a single during the first inning of a baseball game against the Miami Marlins, Saturday, Sept. 7, 2024, in Miami. (AP Photo/Marta Lavandier)
Philadelphia Phillies' Kyle Schwarber (12) slides into second base as Miami Marlins second baseman Otto Lopez (61) is late with the tag during the first inning of a baseball game, Saturday, Sept. 7, 2024, in Miami. (AP Photo/Marta Lavandier)
of a baseball game, Saturday, Sept. 7, 2024, in Miami. (AP Photo/Marta Lavandier)
Miami Marlins' Connor Norby is congratulated by his teammates after hitting a two-run home run during the first inning of a baseball game against the Philadelphia Phillies, Saturday, Sept. 7, 2024, in Miami. (AP Photo/Marta Lavandier)
