By Esther Fung
Shares of United Parcel Service fell about 5% Tuesday, after a Bank of America research analyst lowered his forecast for the parcel carrier's earnings in the current quarter.
In a research note Tuesday, Ken Hoexter wrote that he now expects UPS earnings per share for the quarter ending March 31 to come in at $1.31, down 15% from his previous forecast, because tariff uncertainty and winter weather are contributing to softer demand. He now expects UPS to report an 8% decline in domestic parcel volume for the quarter, a bigger decline than the 5.7% reduction he earlier forecasted.
The parcel carrier hasn't reduced its operating costs enough to offset the decline in parcel volumes, Hoexter said. "UPS noted hesitancy to pull out additional structural costs beyond current targets as it expects the temporary tariff demand freeze to ease," he wrote.
UPS reports earnings for the current quarter on April 29.
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(END) Dow Jones Newswires
March 25, 2025 14:24 ET (18:24 GMT)
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