UPS cuts Its way to earnings beat, stock rises 13%
The post UPS cuts Its way to earnings beat, stock rises 13% appeared com. Delivery and logistics company UPS (NYSE: UPS) saw revenue and earnings decline in the third quarter, but the stock price was soaring Tuesday mostly on its massive layoffs and cost-cutting initiatives. The struggling company saw its stock price surge some 13% to over $100 per share in early trading on Tuesday. The stock since dropped back down to around $95 per share, up 8% on the day. UPS stock is still down about 24% year-to-date. Revenue: $21. 4B, down 4% year-over-year. This beat estimates of $20. 8B. Operating profit: $1. 8B, down 10% year-over-year. Adjusted operating profit: $2. 13B, up 8% year-over-year, Earnings: $1. 55 per share, down from $1. 80 per share in Q3 2024. Adjusted earnings: $1. 74 per share, down from $1. 76 per share in Q3 2024. This beat estimates of $1. 30 per share. The bigger story though is the company’s aggressive expense reduction efforts, which have boosted the company’s profits. “We are executing the most significant strategic shift in our company’s history, and the changes we are implementing are designed to deliver long-term value for all stakeholders,” Carol Tomé, UPS CEO, said. “With the holiday shipping season nearly upon us, we are positioned to run the most efficient peak in our history while providing industry-leading service to our customers for the eighth consecutive year.” 48, 000 layoffs and 93 facilities closed UPS has made some $2. 2 billion in cuts so far this year through the first three quarters. By the end of the fiscal year, the firm intends to shed costs by $3. 5 billion. Part of that comes from the divestiture of its Coyote Logistics business late last year. But that’s just part of its turnaround efforts. UPS has been executing on three initiatives Transformation 2. 0, Fit to Serve, and Efficiency Reimagined. These initiatives have resulted in 48, 000 layoffs, including 14, 000 executive positions and. Continue reading UPS cuts Its way to earnings beat, stock rises 13%