Sneak peak: UPS hammered, and rightly so

As widely expected in our circles, UPS had a very bad day on the stock market today following the release of strong Q3 ’20 numbers.

Be patient. Premium‘s Mike Weir will delight us on Thursday: ‘Better, Not Bigger’ at UPS, just not yet… is on its way.

Sneak peak here: “What’s not to like about a company that posts a 16% year-on-year jump in quarterly revenues? Umm, better ask UPS investors.”

In the meantime, Seeking Alpha reports:

– United Parcel Service (NYSE:UPS) reports revenue growth of 15.9%, due to growth across all segments. Consolidated average daily volume increased 13.5% Y/Y.

– U.S. Domestic Segment: Revenue grew 15.5% to $13.23B, average daily volume increased 13.8%, with growth across all products and continued elevated residential demand. Adjusted operating margin rate was 8.6%.

– International Segment: Revenue increased 17% to $4.09B, average daily volume increased 12.1%, with double-digit export volume growth globally and continued strong outbound demand from Asia. Adjusted operating margin rate was 23.8%.

– Supply Chain and Freight revenue increased 16.5%, driven by strong freight forwarding demand out of Asia. Adjusted operating margin rate was 7.7%.

To read the full post, please click here.

You may also want to read this pre-market update: “Wall Street set for a big drop at the open, with Dow futures sinking more than 600 points“.

For the record, UPS stock down 4.4% 15 min. ahead of trade; down 6.7% in early trade, with all main indexes in the red (see the chart below); -4.8% @ 10.50 EST with Dow, S&P and Nasdaq all falling ~ 3%; -6.9% @ 1.55 pm EST, with Dow, S&P and Nasdaq all down ~ 3%; down 8.3% @ 3.35 pm EST.

(Source MarketWatch)

End of trade: UPS closed the session at -8.8% on Wednesday, shedding ~ $13bn in value. Dow, S&P and Nasdaq down 3.4%, 3.5%, and 3.7%, respectively.

Now read this: “Blackrock and Goldman Sachs are piling into this $30 trillion opportunity“.

Curtains: “Sell the stocks. But don’t take the bonds. Or the cannoli“.

Up we go, which feels pretty good in terms of pure bargaining power ahead of Xmas.

(Source Google)

Anyway, the UPS earnings call transcript is here.