United Parcel Service said on Thursday it expects 2025 revenue below Wall Street estimates, as gains from cost cuts are outweighed by customers continuing to opt for cheaper, slower ground-based deliveries from more profitable air-based services.

(Reuters) - -United Parcel Service on Thursday forecast 2025 revenue below Wall Street estimates, as gains from cost cuts were offset by customers opting for cheaper, slower ground-based deliveries from more profitable air-based services. Shares of the world's largest package delivery fell more than 5% early in the trading session.

United Parcel Service Inc. tempered expectations for a long-awaited rebound this year in demand for its parcel shipping services, projecting annual revenue well below expectations.

Parcel delivery company UPS (NYSE:UPS) will be announcing earnings results tomorrow before market hours. Here’s what investors should know.

Parcel delivery company UPS (NYSE:UPS) met Wall Street’s revenue expectations in Q4 CY2024, with sales up 1.5% year on year to $25.3 billion. On the other hand, the company’s full-year revenue guidance of $89 billion at the midpoint came in 6.

The company said it had reached an agreement in principle with its top customer to lower volume by more than 50% by the end of 2025. UPS has also decided to insource all of its UPS SurePost products and reconfigure its U.S. network.

United Parcel Service Inc. Cl B closed 14.27% below its 52-week high of $158.95, which the company reached on March 22nd.

United Parcel Service's financials stabilized, with recent quarters showing revenue and net income growth. Read why UPS stock is a good investment opportunity.

United Parcel Service Inc (UPS) stock saw a modest uptick, ending the day at $136.26 which represents a slight increase of $3.23 or 2.43% from the prior close of $133.03. The stock opened at $133.9 and touched a low of $133.

Key Takeaways UPS is slated to post its fourth-quarter earnings report before the market opens Monday.Revenue and profit are expected to rise year-over-year for a second straight quarter after several quarters of declining sales.

UPS' shares fell 5% before the bell after the company said it had reached an agreement with Amazon — without naming the firm but referring to it as its largest customer — to cut volumes it transports with UPS by more than 50% by the second half of next year.

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