United Parcel Service (NYSE: UPS) was the worst-performing stock in the S&P 500 on Tuesday, with its shares dropping to their lowest level in nearly five years. UPS closed the day down 5%, at $109.95, marking its lowest price since June 29, 2020, when the stock finished at $109.48.
Interestingly, the company did not issue any new press releases or SEC filings on Tuesday to explain the sharp decline.
This drop follows a steep plunge earlier in the year. On January 30, UPS shares plunged 14% after the company reported weaker-than-expected fourth-quarter results and announced it would scale back its business with Amazon (NASDAQ: AMZN), its largest customer.
For the fourth quarter, UPS posted a net income of $1.72 billion, or $2.01 per share, on $25.3 billion in revenue. According to Visible Alpha, analysts had expected a profit of $2.14 billion, or $2.51 per share, on $25.35 billion in revenue.
However, after excluding $639 million in charges—primarily related to pension costs—the company reported adjusted earnings per share (EPS) of $2.75, which beat analyst expectations of $2.51.
In addition, UPS provided a cautious outlook for 2025, projecting revenue of about $89 billion, significantly lower than analysts’ expectation of over $95 billion. The company also unveiled new “multi-year ‘efficiency reimagined’ initiatives”, which are expected to generate about $1 billion in savings.
United Parcel Service (NYSE: UPS) stock has struggled since hitting an all-time high of $232.11 on February 2, 2022, amid record pandemic demand. Since then, UPS shares have lost more than half their value.
