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Yahoo
5 days ago
- Business
- Yahoo
Air Freight and Logistics Stocks Q1 Teardown: United Parcel Service (NYSE:UPS) Vs The Rest
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the air freight and logistics industry, including United Parcel Service (NYSE:UPS) and its peers. The growth of e-commerce and global trade continues to drive demand for expedited shipping services, presenting opportunities for air freight companies. The industry continues to invest in advanced technologies such as automated sorting systems and real-time tracking solutions to enhance operational efficiency. Despite the advantages of speed and global reach, air freight and logistics companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies' offerings while fuel costs can influence profit margins. The 6 air freight and logistics stocks we track reported a strong Q1. As a group, revenues were in line with analysts' consensus estimates while next quarter's revenue guidance was 3.5% below. In light of this news, share prices of the companies have held steady as they are up 1.6% on average since the latest earnings results. Trademarking its recognizable UPS Brown color, UPS (NYSE:UPS) offers package delivery, supply chain management, and freight forwarding services. United Parcel Service reported revenues of $21.55 billion, flat year on year. This print exceeded analysts' expectations by 2.1%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' sales volume and EBITDA estimates. 'I want to thank all UPSers for their hard work and efforts in this very dynamic environment,' said Carol Tomé, UPS chief executive officer. The stock is up 1.4% since reporting and currently trades at $98.48. Is now the time to buy United Parcel Service? Access our full analysis of the earnings results here, it's free. Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services. Expeditors reported revenues of $2.67 billion, up 20.8% year on year, outperforming analysts' expectations by 3.6%. The business had a stunning quarter with a solid beat of analysts' EBITDA estimates. Expeditors delivered the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it's traded sideways since reporting. Shares currently sit at $111.57. Is now the time to buy Expeditors? Access our full analysis of the earnings results here, it's free. Started with $10,000, Hub Group (NASDAQ:HUBG) is a provider of intermodal, truck brokerage, and logistics services, facilitating transportation solutions for businesses worldwide. Hub Group reported revenues of $915.2 million, down 8.4% year on year, falling short of analysts' expectations by 5.7%. It was a softer quarter as it posted full-year revenue and EPS guidance missing analysts' expectations. Hub Group delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 2% since the results and currently trades at $33.79. Read our full analysis of Hub Group's results here. Sporting one of the largest air cargo fleets in the world, FedEx (NYSE:FDX) is a global provider of parcel and cargo delivery services. FedEx reported revenues of $22.16 billion, up 1.9% year on year. This result beat analysts' expectations by 0.9%. However, it was a slower quarter as it produced full-year EPS guidance missing analysts' expectations. The stock is down 11% since reporting and currently trades at $218.89. Read our full, actionable report on FedEx here, it's free. Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ:CHRW) offers freight transportation and logistics services. C.H. Robinson Worldwide reported revenues of $4.05 billion, down 8.3% year on year. This number missed analysts' expectations by 4.9%. Zooming out, it was actually a strong quarter as it logged a solid beat of analysts' EBITDA estimates. The stock is up 7.9% since reporting and currently trades at $96.16. Read our full, actionable report on C.H. Robinson Worldwide here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Times
06-05-2025
- Business
- New York Times
UPS and FedEx Once Handled a Deluge of Packages From China. That's Changing.
Less than a year ago, executives from FedEx and UPS were talking about how they were handling a flood of packages from China to American consumers. 'Explosive' is how Carol Tomé, UPS's chief executive, in July described the volume of shipments from e-commerce companies selling Chinese goods in the United States. And FedEx's chief customer officer, Brie Carere, said about those companies in June, 'No one carrier can serve their entire needs.' But that torrent is expected to slow to a trickle after President Trump on Friday closed a loophole that had allowed cheap goods from China to enter the United States without paying tariffs. The business of transporting hundreds of millions of low-value shipments on as many as 60 freighter flights a day between China and the United States could now wither. A falloff in such shipments could deprive companies like UPS, FedEx and DHL of a big source of revenue. Airlines, mainly those that carry only cargo, and smaller logistics companies could also suffer. Passenger airlines may also be hurt somewhat because they carry some of those packages, too. UPS said last week that it expected the revenue from shipping packages from China to the United States — its most profitable trade lane — to decline roughly 25 percent in the second quarter of this year, from a year earlier. UPS also announced that it would cut 20,000 jobs this year as part of a long-term plan to reduce costs, and said 'macroeconomic uncertainty' prevented it from updating its forecasts for revenue and profits for 2025. Want all of The Times? Subscribe.
Yahoo
01-05-2025
- Business
- Yahoo
UPS layoffs: 20,000 jobs cut, 73 locations to close as company cites less Amazon business and tariff uncertainty
United Parcel Service (UPS) said on Tuesday it will slash 20,000 jobs and close more than 70 facilities to lower costs as it braces for less Amazon shipments, due to global economic uncertainty and changing consumer habits. Big Lots stores reopening update: Here's the full list of locations that will open this week Joann fabrics store closing dates: Here's the full list of locations that will close for good this week What's behind the rise in interim CEOs The package delivery company said in addition to the job cuts, it would shut at least 73 owned and leased locations this year by the end of June, perhaps more, and expects to save $3.5 billion in 2025 from the cost-cutting measures. UPS' first-quarter revenue fell slightly to $21.5 billion, but the company still beat Wall Street earnings expectations of $21.05 billion, according to the data firm London Stock Exchange Group (LSEG), per Reuters. Shares of the company (NYSE:UPS) rose nearly 2% before the market opened on Tuesday. The stock was down less than 1% in midday trading at the time of this writing. It's worth noting that news of UPS decreasing its Amazon shipments follows similar earnings guidance from last quarter. In January, the company announced a deal with its largest customer to lower its volume by more than 50% by the second half of 2026. (In 2024, accounted for 11.8% of UPS's overall revenue, according to CNBC.) 'As a trusted leader in global logistics, we will leverage our integrated network and trade expertise to assist our customers as they adapt toa changing trade environment,' UPS CEO Carol Tomé said in a statement, likely alluding to the current economic uncertainty and potential for slowing trade as a result of the Trump Administration's sweeping tariffs. 'The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS,' Tomé added. 'The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier.' Like many other companies who have declined to provide a full financial forecast during recent earnings calls, due to the rapidly changing economic landscape, UPS did not provide an update to its full-year outlook on its earnings call. This post originally appeared at to get the Fast Company newsletter: Sign in to access your portfolio
Forbes
30-04-2025
- Business
- Forbes
UPS To Lay Off 20,000 Workers
A Teamster employee delivering a package for UPS Amidst falling consumer confidence - the Conference Board's Consumer Confidence Index fell to its lowest level since 2011 - United Parcel Service (NYSE: UPS) announced it is laying off 20,000 workers. UPS believes that they are the world's largest package delivery company. The logistics industry is considered a bellwether industry that can provide an advanced warning of a recession. Does the massive layoff at UPS signal that bad times are coming? UPS announced the layoff during its first quarter 2025 earnings call on Tuesday. In addition to laying off 20,000 employees, the company plans to close 73 buildings by the end of June and reduce the total number of hours devoted to operations by their workers by 25 million. Carol Tomé, the CEO of UPS, also commented that uncertainty surrounding global trade policies led to a drop in consumer confidence and muted demand from some larger customers, but particularly from their small and medium-sized customers. In terms of average daily shipping volumes, this drop in what they forecast occurred in February and March as the tariff turmoil increased. The company forecasts that its cost-saving measures will lead to $3.5 billion in cost reductions in 2025. Roughly 35% of the cost savings will come from the layoff. The Teamsters General President Sean M. O'Brien reacted to the announcement by pointing out that UPS 'is contractually obligated to create 30,000 Teamsters jobs under our current national master agreement. If the company intends to violate our contract or makes any attempt to go after hard-fought, good-paying Teamsters jobs, UPS will be in for a hell of a fight.' The economic news is not as bad as it first appears. While the layoff had not been announced, the company had announced a plan to reduce its reliance on Amazon as a customer. Amazon is their largest customer. The company reached an agreement with Amazon to reduce its volume in its network by more than 50% by June 2026. 'The volume we are transitioning out (of) is Amazon's fulfillment center outbound volume,' Ms. Tomé explained. 'This volume is not profitable for us, nor a healthy fit for our network. The Amazon volume we plan to keep is profitable.' Secondly, the layoffs are also driven, in part, by new automation. The company had announced a Network of the Future initiative. UPS is automating sortation, using robotics for automatic label applications, and automating the unloading and loading of trailers. 64% of their volume went through automated facilities in the first quarter. That is an improvement of about four and a half percent year over year. In addition to reducing costs, UPS believes that automation will improve its ability to better handle shifts in volume and regional shifts in shipping. UPS imports of roughly 400,000 pieces per day into the U.S. Last year, revenue on its China to U.S. trade lane represented 11% of their international revenue. The China to U.S. trade lanes are UPS's most profitable lanes. The change to the de minimis rule, which exempted shipments that had a value of less than $800 from tariffs, had been expected to have a significant impact on freight forwarders and parcel consolidators. That change is having an effect. 'We've talked with our top 100 customers to understand how their business is being impacted, both directly and indirectly, by changes in trade policy,' Ms. Tomé said. 'These customers have told us that they are exploring various options to address the tariffs.' These range from absorbing the cost, to increasing retail prices to reflect the increase in tariff costs, to asking suppliers to help defray the expense. 'At this point, it remains an open question as to what path they will choose and what the potential impact could be on consumer demand and our business.' Through the middle of April, this logistics behemoth interviewed nearly 45,000 international and freight forwarding customers to ascertain their shipping plans. 'For small package shippers,' the CEO explained, 'over 95% of those customers have told us that they expect to maintain the current business model, while the rest are considering several options, including trade shifts, transportation mode shifts, or exiting the business.' These customers also told UPS they are pursuing a wait-and-see strategy by selling down their current inventory. This will hurt UPS's shipping volumes in the short term, but the company expects it to rebound as its customers begin sourcing outside of China and shipping on other trade lanes. Navigating the complexities surrounding tariffs can be a nightmare for shippers. This complexity can benefit UPS. UPS has developed technology that makes it easier for its customers to reclassify goods under Harmonized Tariff Schedule codes. Further, Ms. Tomé said, 'our new global checkout product makes it known what customers will pay for duties, taxes, and fees.' Its checkout technology enables UPS's customers to display to their customers a guaranteed blended cost – a cost that covers all duties, taxes, and fees - during online checkouts. 'Global checkout is available in 43 origin countries, and UPS is the only global carrier that offers a guaranteed landed cost that's integrated into shipping and billing technology.' Finally, for its customers exploring new trade options, UPS provides bonded warehousing. Bonded warehouses are in designated Foreign Trade Zones. A foreign-trade zone is a designated location in the United States where companies can use special customs procedures that can be used to delay or reduce duty payments on foreign merchandise. 'The world hasn't been faced with such enormous potential impacts to trade in more than 100 years. So, the only thing we're certain of is we don't know which, if any of our scenarios will play out,' the CEO exclaimed. 'But by modeling different scenarios, we'll be able to adjust to rapid shifts in the business.' Because of the uncertainty, UPS is not providing full-year guidance to financial analysts.
Yahoo
30-04-2025
- Business
- Yahoo
UPS announces sweeping layoffs, facility closures
United Parcel Service (UPS) announced Tuesday that it plans to slash 20,000 jobs this year due to economic uncertainty and a potential pullback from Amazon, its largest customer. The company also plans to close 73 facilities by the end of June. UPS CEO Carol Tomé said the cutbacks will help the shipping giant adapt to the impact of President Trump's sweeping tariffs, which have upended the global economy. 'The world has not been faced with such enormous potential impacts to trade in more than 100 years,' Tomé said on the company's earnings call. 'The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.' White House: Reports Amazon considering tariff display costs 'a hostile and political act' UPS expects to save $3.5 billion in 2025 through these cuts. The company employs about 490,000 workers, according to FactSet. The announcement was made alongside UPS's first-quarter 2025 earnings report, which showed a slight revenue dip to $21.5 billion, down 0.7% from the same period last year. However, UPS's adjusted operating profit increased by 0.9% to $1.7 billion. UPS is the first major U.S. company to respond to slowing trade through widespread layoffs. It also declined to provide any update to its full-year guidance. 'Given the current macro-economic uncertainty, the company is not providing any updates to its previously issued consolidated full-year outlook,' UPS said. In January, UPS announced that it had reached a deal with Amazon, its biggest customer, to lower its volume by more than 50% by the second half of 2026. The Associated Press contributed to this report. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
