Here's Why UPS Stock Crashed Today
UPS beat expectations, but the market has concerns over operating margins and U.S. Domestic segment performance.
Overview
UPS (NYSE: UPS) stock declined 6.8% by 2:30 p.m. today as the company digested its second-quarter earnings report. The numbers themselves were fine, and management raised its full-year headline guidance. Still, the market obviously has concerns about the company's second half and its strategic direction.
This quarter marks an inflection point in UPS' plans as the company has now completed the so-called "glidedown" of low or even unprofitable Amazon.com deliveries as part of its strategic restructuring. The plan is to engineer a shift toward repurposing its network for higher-margin deliveries, with a deliberate focus on growth markets such as small and medium-sized businesses (SMB) and healthcare, while investing in modernizing its network through technology to improve return on assets.
Details
The good news is the second quarter earnings came in ahead of expectations and management raised its full-year guidance:
Source
Originally published at www.fool.com.