Here's Why UPS Slumped 13% in the 1st Half of 2024, and Why It Could Come Back in the 2nd Half
It's been a challenging year for (NYSE: UPS), and the stock declined 13% in the first half of the year, according to data from S&P Global Market Intelligence. The decline reflects the ongoing challenges caused by a decrease in delivery volumes and the increase in compensation costs resulting from a new labor contract agreed upon last year.
It gets worse. Last year's protracted labor negotiations caused customers to divert deliveries to other networks, fearing strike action at UPS facilities last year. As such, UPS found itself battling declining volumes and difficult cost comparisons with the same quarter of previous years.
But here's the thing: Management expects a dramatic turnaround in earnings growth in the second half of 2024. Its guidance for 2024 implies a 20% to 30% decline in adjusted operating profit in the first half compared with the first half of 2023, with adjusted operating profit increasing 20% to 30% in the second half of the year -- again compared with the second half of 2023.
Source Fool.com
United Parcel Service Inc. Stock
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