United Parcel Service (NYSE: UPS) used cost cutting to offset soft demand and deliver a first-quarter beat. Investors appear more relieved than excited, sending UPS shares up as much as 3% on the day and up 1.8% as of 11 p.m. ET.
It has been a tough few quarters for major shipping companies. A period of post-pandemic inventory restocking fueled demand for transportation services, but in 2023, as doubts formed about the health of the economy, large corporate customers looked to cool their supply chains and cut back on expenses.
The trend continued through the first three months of 2024. UPS earned $1.43 per share in the first quarter, beating Wall Street's $1.30-per-share estimate, but revenue of $21.7 billion was down 5.3% from last year and fell slightly below expectations.
Source Fool.com