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United Parcel Service (NYSE:UPS) stock slid nearly 10% on Tuesday, the steepest decline since the summer of 2006, after disappointing investors with a Q1 earnings update.
The Atlanta-based transportation company reported a miss on top and bottom lines for the first quarter while highlighting slowing volume trends. While cost cuts are expected to soften the blow on the bottom line for the remainder of the year, management nonetheless reined in guidance toward the lower-end of prior forecasts.
“Over the first quarter of 2023, the global volume environment deteriorated due to challenging macro conditions and changes in consumer behavior. As a result, UPS expects full-year revenue and adjusted operating margin to be at the low end of its previously guided range,” the earnings release stated.
Management also highlighted the cost of higher wages for unions and the potential for strikes impacting earnings results. Shares of UPS dove 9.99% for the worst day for the stock in nearly two decades.
Read the earnings call transcript.