UPS shares fall back to minimums not seen from COVID after the reduction of the target price by Bank of America

• UPS actions fall for the second day after not reaching the consensus of profits of the second quarter.
• The lack of guidance for 2025 has led to UPS shares below $ 90 per share.
• Microsoft and Meta Platforms profits after closing will influence the feeling of the market.

United Parcel Service (UPS) He saw his shares for second consecutive session fall on Wednesday after some poor quarterly results, visiting the region below $ 90 that he had not seen since the start of the COVID in 2020. For the second consecutive quarter, UPS executives chose not to provide guidance for 2025, since the Trump administration increases and decreases tariff fees that have a direct effect on commercial flows.

The market in general is mixed, with Dow Jones down 0.1% at noon Est, while Nasdaq Composite rises shyly. Investors are waiting for speech after the decision on the interest rates of the president of the Federal Reserve (FED), Jerome Powell, who will have the power to move the markets in the afternoon. After the speech, Microsoft (MSFT), Meta Platforms (Meta) and Qualcomm (Qcom) They will publish their quarterly profits after closing. In other words, it is a great day for the US Variable Income Market.

In addition, inflation data of the Personal Consumer Price Index (PCE) will arrive on Thursday and the always important non -agricultural payroll (NFP) will be published on Friday. Friday is also when the Trump administration will begin to set tariff rates in countries with which it has not yet reached a commercial agreement.

News about UPS actions

UPS only lost the profits of the second quarter on Tuesday, and the income exceeded the consensus of Wall Street by $ 350 million, despite falling 3% compared to the previous year. The delivery company reported $ 1.55 in Action -adjusted profits (EPS) over 21.2 billion dollars.

A certain decrease in income was expected as UPS ends its low margin shipping association with Amazon (AMZN). The sale of its Coyote Logistic to XPO business has also led to an expected decrease in its supply chain solutions.

Shipping revenues in the US fell 0.8% year -on -year to 14.1 billion dollars, but international shipping revenues increased a 2.6% year -on -year to 4.5 billion $. The total packages sent in the second quarter reached 19.74 million, a 5.7% decrease compared to 20.93 million of the same quarter of the previous year. However, that was largely due to the reduction of collaboration with Amazon, and the average income per package increased by 4.8% year -on -year to $ 14.34.

“Our results of the second quarter reflect both the complexity of the panorama and the strength of our execution,” said the CEO Carol I took in a statement. “We are achieving significant progress in our strategic initiatives, and we are sure that these actions are positioning the company for a stronger long -term financial performance and an improved competitive advantage.”

Bank of America reduced its objective price for UPS shares to $ 98 from $ 115, citing greater tariff pressure on small and medium enterprises.

Prognosis of UPS actions

UPS shares have been downward since they reached a historical maximum above $ 233 per share in February 2022. The position in which it is now is nothing less than submission. Tracking your way back to Covid minimums of 2020 shows how little faith has the market in this powerful long -term actor.

It weighs on it the 7% dividend that has increased every year since 2010. With $ 6.56, the 2025 dividend is intended to represent approximately 94% of the total gain of the year of 6.97 $ per share. That is whether UPS still achieves that level of profitability, something uncertain now that has withdrawn the orientation.

The market is guessing that the Board will choose to cut the dividend to give the company more margin of maneuver, since the next 18 months seem uncertain.

Meanwhile, UPS is expected to stay within the support range of $ 90 to $ 90 that started five years ago. A rupture below $ 82, the minimum of COVID, would send UPS’s shares to a nobody area.

DIARY GRAPH OF UPS ACTIONS