UK markets closed

United Parcel Service, Inc. (UPS)

NYSE - NYSE Delayed price. Currency in USD
Add to watchlist
197.77-0.28 (-0.14%)
At close: 4:04PM EDT
Sign in to post a message.
  • N
    N
    All I know is every Amazon package I see delivered around me is derived by either UPS or the USPS they need to start squeezing Amazon before they get big enough not to need UPS!
  • D
    Dudesbag
    Once again, Amazon has done the "giant squid" routine on its competitors. After purchasing a number of aircraft during in recent times, Amazon has announced that it is transporting cargo for the postal service. That impacts both UPS and FDX as we were the primary recipients of that volume. One wonders what the pay scale of the pilots who are contracted by Amazon to fly that aircraft vs. the rate of pay/benefits of UPS and FDX pilots under their strong unions. It just appears that Amazon has no limits as to what segments of the logistics business it targets. UPS and FDX just need to diligently keep pace until via monopoly or anti-trust actions congress might decide to break up some of the big behemoths.
  • D
    Dudesbag
    It sure seems like an investor over-reaction to a rational investor conference. No doubt not providing the earnings forecast or cost cutting plans dinged us as it always will. But in my view, the rest of the presentation was as expected. We're right in the ball park of analyst expectations regarding revenues for 2023 which seemed to have been the focus. We continue to pursue that level despite targeting the more lucrative SMB and health care volume and moving to protect ourselves from the Amazon ongoing delivery expansion. As a result, gross revenues might go down as better margins are preferred. Here's something I found odd. Overall, analysts are expecting UPS 2023 operating margins to come in around 13%. In a story generated by a Bloomberg reporter, he reported that UPS indicated 10.5% to 12%. HOWEVER, Reuters reported 12.7% to 13.7% which according to the UPS story on the website is the accurate number. It would seem Bloomberg should be issuing a correction as they are a major finance source and that is a major metric. I suspect as the conflict is resolved and perhaps more attention is focused on that true number, there is no reason why shares shouldn't rise. It would seem that UPS is doing things right to optimize profitable volume over taking small margin stuff that actually might be helping Amazon in its longer range, in house shipping goals. FDX got out early and we're apparently following suit while modifying our operations accordingly. My prediction is around $203 or so by week's end and a slow climb higher towards analyst targets in coming weeks. I think This reactionary drop to below $200 was a temporary blip and there's no reason to believe we're not solidly on the path that should be followed.
  • D
    Dudesbag
    Hey folks- a late addition to the UPS strategic plan. Tome announced they have a team looking at an out of network component for same day delivery. That would seem to be solid forward thinking and could complement to expansion of Saturday delivery nicely.
  • J
    J.C.
    Morgan Stanley's Recap of UPS Strategy Meeting:
    "2021 Analyst Day: Not Quite the Event We Were Promised
    UPS’s Analyst Day was somewhat of a victory lap on recent gains but light on the details (and numbers) around guidance, cost savings, pricing strategy and competition that we and the market were looking for. In general, there were no real surprises and the content / message did not deviate much from past UPS analyst days despite the almost all-new management team. This may come as somewhat of a disappointment as the mgmt. team had indicated that everything was on the table and that no stone would be left unturned as part
    of the “Better not Bigger” strategy revamp. In addition, the content came across to us as slightly backward-looking, a (deserved) pat on the back for how much UPS has improved in the last 15 months – both aided by and despite the pandemic – but forward-looking detail was a little light."

    The bloom is off the rose for Carol Tome, who has been on the UPS board of directors for many years. She rode the coattails of David Abney's Transformation initiatives and his heavy CapEx spending to increase capacity which was perfect timing for the pandemic B2C windfall. Carol confirmed what many of us suspected, i.e. she was a really good CFO at Home Depot, but doesn't have the strategic vision and leadership required to be a really good CEO. Which is why Home Depot didn't promote her to being their CEO when the position opened. UPS now has 2 really good CFO's, and we'll have to wait about 5 years to see if they can find a strong CEO.
  • N
    N
    Absolutely disappointing! To drop back under $200 is very discouraging !! Mean while Amazon pays no taxes, cuts deals with every UPS client and buy up all kinds of companies and aircraft. Rapidly eroding UPS volume!
  • C
    Charlie gonna Charlie
    I suffered a paper loss today.
    In other news I also had a glass of fresh squeezed orange juice...
  • J
    J.C.
    Today's the day we'll be listening to UPS tell us about their strategic plans. Hopefully we'll learn specifics about: where they plan to expand their international footprint; leverage new technology to improve productivity such as driverless trucks, robots for deliveries, blockchain and digital currency; partnerships with new technology companies including equity options in return for help with R&D and giving their technology credibility in marketplace; new technology platforms and contracts with their suppliers to allow middle market customers to leverage UPS buying power and create new sales channels; investments in building out a best in class reverse logistics network of consolidation, reclamation and retail centers for returns and distressed goods; gameplay for leveraging 3PL's to fill excess capacity on backhaul lanes without jeopardizing margins on existing business; and how they plan to complete against FedEx when they bundle their parcel business with LTL since UPS sold off their LTL division. Let's hope that their strategic discussions aren't dominated by political correctness, wokeness, ESG, and making hiring and promotional decisions based upon the color of someone's skin or what type of genitalia they have.
  • h
    honestamerican
    UPS plans on dividend returns to shareholders and share buybacks. Hopefully either yesterday afternoon or this morning they have begun with the buybacks. Anytime the shares are driven down like that it is a golden opportunity. I wonder who decides to pull the trigger when there is a buyback.
  • R
    Ralphy Boy
    UPS has been delivering small packages since 1907, from the beginning......
  • G
    Gary
    ups will detail more of their "transformation" plans tomorrow. expect hey will focus on more cost reductions by trying to get rid of senior employees - not age descriminiation, they wouldn't do that right? -they value years of service and dedication lol ... good for stockholders though -the stock may get another bump up. expect a very positive mtg from upper mgmt - they must be happy with their stock options..
  • D
    Dudesbag
    FDX and Nuro announced a test project in the Houston area for multi-stop and by appointment delivery by their electric vans. Hopefully, UPS has some things up their sleeve to bring some momentum back our way.
  • r
    robert
    Honestly feel like this is a dip you buy. The announcement of $100 billion in revenue and the stock tanks 5 percent. Obviously some people aren't liking the announcement of their strategic plans but the CEO is very competent and I'm convinced she can turn this company into a $300 stock over time.
  • G
    Gary
    my campbells soup shares are getting hit on earnings today ....mmm mmm...not so good ... another exciting holding of mine ... dealing with supply chain and marin issues from higher input costs ...it is getting tougher out there for companies ..
  • D
    Dudesbag
    Citigroup maintains neutral rating but raises target from $220 to $235.
  • D
    Donald
    We seem to be settling in fairly well at this $200 plus mark, for years it was the $100. Needless to say a ver happy investor
  • J
    John
    This is a great opportunity to open or add to position. I opened a sizable position in 3 of my accounts. Looking for 2.5-3.5 percent by the end of the week.
  • J
    Jay
    The outlook appears to be good so not sure why the selloff. Really looks like a buying opportunity.
  • R
    Ralphy Boy
    Whats the latest news on the big UPS event on June 9th?
  • G
    Gary
    UPS has traded like a "value" company. I think there has been a shift in that view by big investors and they are starting to see this 100+yr old company as a "growth" company. So it is getting assigned a higher PE multiple and commanding a higher valuation.