UPS’s main competitor, FedEx Corp. (NYSE: FDX), got a shot in the arm earlier this week, when activist investor Bill Ackman of Pershing Square Capital Management, indicated that he is raising a $1 billion fund to go after a large-cap, publicly traded company. FedEx was believed to be the target and shares have gained nearly 6% since then. UPS shares have risen about 3% on FedEx’s coattails.
UPS now expects second-quarter earnings per share (EPS) of $1.13, compared with a consensus estimate of $1.20. The freight carrier also set a full-year EPS target of $4.65 to $4.85, well below the consensus estimate of $4.98.
The shipping industry has been fighting overcapacity issues for at least two years now with little success. Too many ships or planes are a significant anchor dragging on profits. Coupled with customers looking for the cheapest possible method of shipment and a global economy that is barely breathing, UPS faces some significant hurdles.
Shares of UPS are down 5.7% in the first half-hour of trading this morning, at $86.24 in a 52-week range of $69.56 to $91.78.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
