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UPS expects flat domestic revenue in third quarter despite raised full-year guidance

The logistics company's CEO said the business has moved past recent challenges, even as domestic growth stalls
WHY IT MOVED
The flat domestic revenue forecast matters because it shows UPS is still working through weak demand in its core U.S. market even after absorbing the Amazon volume pullback that weighed on results earlier this year.
AT PUBLICATION
UPS107.63▼ -4.71%
Measured when this story was written, not live.
UPS Earnings & guidance InstantWhy Newsroom 2h ago

The numbers

CNBC reports that UPS expects third-quarter domestic revenue to be flat, according to comments from the company's CEO. The statement has not been independently confirmed. The outlook came as UPS beat Wall Street expectations and raised its full-year guidance in its second-quarter earnings report Tuesday.

Why it matters

The CEO's assertion that the company is past its bumps suggests management sees the stagnation as temporary rather than structural. The raised full-year guidance indicates strength in other segments or geographies is offsetting the domestic slowdown.

How this compares

UPS raised its full-year revenue forecast in late July after completing a planned reduction in volume from Amazon, its largest customer. The company reported better-than-expected results at that time and shares rallied on the news that the Amazon pullback had ended. The logistics sector has faced uneven demand as e-commerce growth has slowed from pandemic peaks and businesses have pulled back on shipping spending.

What to watch

Investors will watch whether the domestic business returns to growth in the fourth quarter, traditionally UPS's strongest period due to holiday shipping. The company has not detailed what is driving the domestic weakness or how long management expects it to persist. Third-quarter results will show whether the improved full-year outlook rests on international growth, cost cuts, or a recovery that has yet to appear in the domestic numbers.

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HOW THIS STORY WAS MADE

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Artificially generated from public sources, explained in our own words, and published as fast as possible. Our team holds editorial responsibility. This is analysis, not investment advice.

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