BUZZ-UPS faces third straight year of decline
Shares of parcel delivery firm UPS UPS.N on track to drop more than 20% for 2024, marking their third straight year of decline
Customers' ongoing switch to slower, cheaper deliveries has continued to trouble UPS, forcing it to look at cost-cutting measures to counter fall in demand
Co announced to cut more than 12,000 jobs in January; in June, it sold its freight brokerage business, Coyote, to RXO RXO.N for $1.03 bln
UPS fell short of estimates for quarterly profit once in last four quarters, but missed revenue estimates thrice in same time period - LSEG data
Extreme weather events such as Hurricanes Helene and Milton also impacted co's services throughout 2024
However, UPS in April won USPS contract over rival FedEx FDX.N, with co expecting contract to be profitable in its first year and throughout the more than five-year deal
Analysts believe co to be headed in right direction for 2025, with fundamentals and stock price having bottomed
FedEx's shares up 10.9% YTD
(Reporting by Abhinav Parmar in Bengaluru)
((Abhinav.Parmar@thomsonreuters.com;))
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