UPS beats earnings expectations amid cost-cutting measures
"Big layoffs uh yes but investors have been reacting positively to that and obviously is the main number that has really impressed the street is adjusted earnings that came at $1.74 4 cents and the street was expecting $1.32. So really big positive surprise there. Of course profit expectations are helping but cutting costs and eliminating 32,000 jobs has been a major impact here. The ticker is UPS of course and shares are up about 5%. Actually in early trading they jumped as much as 13%."
UPS delivered a strong earnings beat with adjusted earnings surpassing expectations and significant cost-cutting via layoffs, which has driven its shares higher in early trading.
UPS Cost Cutting Driving Operational Efficiency
"And let's start with the United Parcel Service. they deliver. Uh they smashed Wall Street profit expectations and they did it by cutting costs and unfortunately by eliminating 34,000 jobs this year. Uh this is the cut to its permanent operational workforce and that includes uh delivery drivers, package handlers. It's actually a 70% increase uh from the previous layoff target that we heard about as part of the cost-saving initiative. They've closed daily operations at 93 leased and owned buildings. Uh the results suggest that the CEO revival efforts are gaining traction. The stock, by the way, um really being rewarded for these latest efforts."
This segment highlights UPS's aggressive cost-cutting measures including significant workforce reductions and closure of buildings, which have helped the company exceed profit expectations and boost stock performance despite ongoing industry challenges.
UPS Cost Cutting and Operational Efficiency
"Let's start with the United Parcel Service. They deliver. They smashed Wall Street profit expectations and they did it by cutting costs and unfortunately, by limiting 34,000 jobs this year. This is the cut to its permanent operational workforce, and that includes delivery drivers, package handlers. It's actually a 70% increase from the previous layoff target that we heard about as part of the cost saving initiative. They've closed daily operations at 93 leased and owned buildings. The results suggest that the CEO revival efforts are gaining traction."
UPS is executing significant cost-cutting measures, including a steep increase in layoffs and closing operations, which appears to be positively impacting its profitability and market reward. The commentary highlights improved operational efficiency and a revived CEO strategy despite broader industry challenges.
Positive Q4 Outlook for UPS Amid Holiday Catalyst
"Is the economy good? Well, UPS, they're up 12% in pre-market. 12% in pre-market. Again, UPS, the Brown shipping company, is up 12% in pre-market. I said yesterday that I thought Q4 would be good because of the holiday shopping season and shipping being key to the economy. With the holiday shopping season upon us, UPS's CEO mentioned, 'We are executing the most significant strategic shift in our company's history, and the changes we are implementing are designed to deliver long-term value for all stakeholders. With the holiday shopping season upon us, we are positioned to run the most efficient peak in our history.' So, look at UPS as a key play this quarter."
The speaker highlights UPS's strong pre-market performance, noting a 12% uptick and emphasizing the company's optimistic Q4 outlook driven by holiday season catalysts and a strategic shift announced by the CEO.