UPS stock sinks on downbeat guidance and shipping volumes

Shares of UPS sink on the delivery service provider's declining shipping volumes amid economic woes.

Video transcript

- All right, UPS shares sinking today on disappointing first quarter earnings. The stock closing down 10%. The shipping giant saying deceleration in US retail sales led to lower than expected volume. And they expect to stay under pressure, given macroeconomic uncertainty. Some scary words given the bellwether that UPS is for the economy. The company lowered its full year revenue guidance to $97 billion, about 3% below 2022 revenue.

- Yeah, you took the words right out of my mouth. Bellwether. They are seen as a bellwether for the US economy. So as goes UPS, as goes the broader US economy. So investors worried about what this means for the broader US economy, worried about the impact to consumers in general.

And we've seen a lot of companies during this earnings season start to just warn about the potential for softness in the economy. Many seeing the potential for a mild recession. So you're seeing that reflected, a burst-- you're seeing that reflected in UPS numbers.

So again, they're having pressure, along with the broader market. You're seeing issues with regard to e-commerce.