{"id":6189,"date":"2025-01-30T15:29:39","date_gmt":"2025-01-30T20:29:39","guid":{"rendered":"https:\/\/guardianglobe.org\/?p=6189"},"modified":"2025-01-30T15:29:42","modified_gmt":"2025-01-30T20:29:42","slug":"ups-to-cut-amazon-deliveries-by-50-shares-drop-15","status":"publish","type":"post","link":"https:\/\/guardianglobe.org\/?p=6189","title":{"rendered":"UPS to Cut Amazon Deliveries by 50%, Shares Drop 15%"},"content":{"rendered":"\n

UPS (UPS<\/strong>) announced on Thursday that it will slash its Amazon (AMZN<\/strong>) delivery volume by more than 50% by the second half of 2026, a move that sent its stock plummeting as much as 15%. However, the company emphasized that the strategy is aimed at improving long-term profitability.<\/p>\n\n\n\n

“The portion of the business that we’re transitioning out of just doesn’t make sense for us to do,” said UPS CFO Brian Dykes<\/strong> in an interview with Yahoo Finance. “We want to manage our assets and resources in areas of the market where we can drive higher yields and returns.”<\/p>\n\n\n\n

Lower Volumes, Higher Margins<\/h2>\n\n\n\n

Dykes noted that while the decision will reduce UPS’s shipping volumes in the short term, it is expected to contribute to higher operating margins. He clarified that Amazon will remain a key long-term partner, but UPS will prioritize deliveries that involve multiple pickup locations or require long-haul shipments across the U.S.<\/p>\n\n\n\n

Despite the shift, UPS still anticipates generating approximately $89 billion<\/strong> in revenue in 2025, missing Wall Street’s consensus estimate of $94.9 billion.<\/p>\n\n\n\n

Wall Street Reacts to UPS’s Amazon Shift<\/h2>\n\n\n\n

Evercore ISI analyst Jonathan Chappell<\/strong> called the decision to cut Amazon deliveries a “surprise” and warned that the rapid implementation of the plan could negatively affect short-term results.<\/p>\n\n\n\n

“UPS will realign its network for this volume loss, but the speed at which it will unfold will negatively impact near-term results,” Chappell wrote in a note to clients.<\/p>\n\n\n\n

Jefferies equity analyst Stephanie Moore<\/strong> pointed out that while UPS delivered better-than-expected earnings<\/strong> for the fourth quarter\u2014posting $2.75 per share<\/strong> versus Wall Street’s forecast of $2.53\u2014investors remain focused on the company’s weak revenue outlook and shrinking Amazon partnership.<\/p>\n\n\n\n

Investor Frustration Continues<\/h2>\n\n\n\n

UPS’s U.S. domestic operating margin for the fourth quarter was 10.1%<\/strong>, exceeding expectations of closer to 9.5%. However, analysts noted that investors are fixated on the company’s long-term growth prospects<\/strong>.<\/p>\n\n\n\n

“The announcements today add to what has been a frustrating several years for investors,” Moore stated.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

UPS (UPS) announced on Thursday that it will slash its Amazon (AMZN) delivery volume by more than 50% by the second half of 2026, a move that sent its stock plummeting as much as 15%. However, the company emphasized that the strategy is aimed at improving long-term profitability. “The portion of the business that we’re<\/p>\n","protected":false},"author":5,"featured_media":6190,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[3451,3449,3458,3452,3454,3443,3450,3453,3446,3456,3448,3444,3445,3455],"class_list":{"0":"post-6189","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-amazon-logistics-shift","9":"tag-amazon-shipping-changes","10":"tag-amazon-shipping-cost-strategy","11":"tag-evercore-isi-ups-analysis","12":"tag-jefferies-ups-earnings","13":"tag-ups-amazon-delivery-cuts","14":"tag-ups-amazon-volume-reduction","15":"tag-ups-cfo-brian-dykes","16":"tag-ups-earnings-report","17":"tag-ups-investor-concerns","18":"tag-ups-profitability-strategy","19":"tag-ups-revenue-forecast","20":"tag-ups-stock-drop","21":"tag-ups-wall-street-reaction"},"_links":{"self":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts\/6189"}],"collection":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6189"}],"version-history":[{"count":1,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts\/6189\/revisions"}],"predecessor-version":[{"id":6191,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts\/6189\/revisions\/6191"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/media\/6190"}],"wp:attachment":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}