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United Parcel Service (NYSE:UPS) fell 17.26% to $110.68 as of 10:48:51 AM ET after posting a mixed Q4 earnings report and announcing a major volume reduction with its largest customer, believed to be Amazon (NASDAQ:AMZN).
Revenue rose 1.6% year-over-year to $25.3 billion, with U.S. domestic revenue up 2.2% to $17.3 billion, aided by higher air cargo demand. International segment revenue grew 6.9% to $656 million, while supply chain solutions revenue declined 9.1%, impacted by the Coyote divestiture. UPS reported earnings per share of $2.75, beating consensus expectations of $2.53. For 2025, UPS now expects $89 billion in revenue, well below the $94.9 billion Wall Street estimate.
The company projects an operating margin of 10.8% and $1 billion in cost savings through an efficiency overhaul. UPS also plans to cut volume from its largest customer by more than 50% by late 2026, aligning with efforts to insource 100% of UPS SurePost and restructure its U.S. network. Investors reacted sharply to the revenue guidance cut and restructuring plans.
This article first appeared on GuruFocus.