Shares of United Parcel Service (UPS) are down 4% after the logistics and delivery company reported mixed financial results for this year’s second quarter.
The Atlanta, Georgia-based company, which is often seen as a bellwether for the U.S. economy, reported earnings per share of $1.55 U.S., which just missed analyst forecasts of $1.56 U.S.
Sales in the period totaled $21.2 billion U.S. Wall Street had been looking for revenue of $20.9 billion U.S.
Management blamed tariffs for a decline in shipping volumes. Specifically, UPS said that demand took a hit from new “de minimis” tariffs placed on low-value Chinese shipments.
U.S. President Donald Trump’s administration has begun collecting tariffs on shipments under $800 U.S. from China that were previously duty-free.
While those levies have been reduced to 54% from an initial level of 120% as part of a trade agreement, consumer demand has still taken a hit and shipments have declined.
UPS did not update its full-year outlook for a second straight quarter, citing ongoing macroeconomic uncertainty.
In its most recent forecast, issued in January of this year, UPS projected 2025 revenue of $89 billion U.S.
The company also announced that it is maintaining its quarterly dividend at $1.64 U.S. per share and expects to spend $5.5 billion U.S. on dividend payments in 2025.
Prior to today (July 29), the stock of UPS had declined 18% to trade at $101.58 U.S. per share.