United Parcel Service(NYSE:UPS) stock is taking a beating on Tuesday following the release of its earnings report for the second quarter of 2021.
Let’s take a look at what has UPS stockholders upset in the most recent earnings report below
- The problem for UPS stock has to do with its shipping volumes.
- According to the report, global shipping volumes were down .8% year-over-year.
- To make matters worse, shipping volumes in the U.S.saw a 2.9% decreasefrom the same time last year.
- In addition to this, UPS notes that residential shipments were down 15.8% from the second quarter of 2020.
- UPS and rivalFedEx(NYSE:FDX) have both been dealing with delivery troubles lately.
- That’s due to the economy rebounding from the pandemic and constraints to supply lines.
- All of this negative shipment news hamperedan otherwise strong earnings reportfor the company.
- That includes adjusted earnings per share of $3.06 on revenue of $23.4 billion.
- Both of these came in above analysts’ estimates of $2.81 per share and revenue of $23.24 billion for the quarter.
- Even so, it wasn’t enough to save the company from today’s decline.
- The falling share price for UPS stock also comes alongside heavy trading.
- As of this writing, more than 8 million shares of the stock have changed hands.
- That’s already well above the company’s daily average trading volume of around 3.5 million shares.