# UPS shares fall as consumer caution dims e-commerce outlook Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-04-26 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: UPS Q1 Earnings Exceed Expectations; Executive Comments on Meta Description: Although e-commerce delivery growth is slowing, UPS's revenue and adjusted earnings beat expectations. CEO Carol Tome is confident about ongoing e-commerce URL: https://financedigest.com/ups-shares-fall-as-consumer-caution-dims-e-commerce-outlookhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-04-26t101009z1lynxnpei3p0edrtroptp4ukraine-crisis-companies-1736815828756-compressed.jpg) (Reuters) -United Parcel Service Inc on Tuesday reported better-than-expected quarterly earnings, but shares fell 3% after executives said they expected e-commerce delivery growth – which drove its pandemic business – to cool this year. UPS now expects volume in its biggest U.S. business to [fall in the first half of 2022 before improving in the latter part of the year](https://www.financedigest.com/spains-november-retail-sales-fall-0-6-on-year.html "Spain’s November retail sales fall 0.6% on year"). We’re not going to see the kind of (e-commerce) growth that we experienced during COVID, but ecommerce sales will continue to grow,” [Chief Executive Officer](https://www.financedigest.com/host-analytics-appoints-chris-labruna-as-chief-revenue-officer.html "Host Analytics Appoints Chris LaBruna as Chief Revenue Officer") Carol Tome said on a conference call with analysts. Executives said higher shipping rates, fuel surcharges and more large and small business deliveries would offset [softer demand](https://www.financedigest.com/aussie-supermarkets-set-to-capitalise-on-high-inflation-but-softer-demand-ahead.html "Aussie supermarkets set to capitalise on high inflation, but softer demand ahead") for residential e-commerce package drops – as they did in the first quarter. Atlanta-based UPS reiterated its 2022 [outlook for revenue](https://www.financedigest.com/tomtom-raises-2023-revenue-outlook-as-automotive-drives-q4-beat.html "TomTom raises 2023 revenue outlook as automotive drives Q4 beat") of about $102 billion and adjusted operating margin of roughly 13.7%. It also announced plans to double its 2022 [share buy-back target to $2 billion](https://www.financedigest.com/abb-to-launch-1-billion-share-buyback-on-april-3.html "ABB to launch billion share buyback on April 3"). Still, [shares fell $5.72 to $183.92 in early trading](https://www.financedigest.com/social-trading-is-the-new-way-that-gen-z-are-getting-their-share-of-the-pie.html "Social Trading is The New Way That Gen Z Are Getting Their Share of The Pie"). Results from UPS came almost two weeks after the Commerce Department [reported back-to-back declines in e-commerce sales](https://www.financedigest.com/ikea-reports-record-sales-as-price-hikes-offset-weakening-consumer-confidence.html "IKEA reports record sales as price hikes offset weakening consumer confidence") for February and March. Pandemic-weary [consumers shifted some spending from goods to services](https://www.financedigest.com/do-consumers-want-robo-advisory-services.html "DO CONSUMERS WANT ROBO-ADVISORY SERVICES?") in response to the United States lifting COVID prevention measures. At the same time, [record gas prices](https://www.financedigest.com/biggest-uk-house-price-fall-recorded-since-financial-crisis.html "Biggest UK house price fall recorded since financial crisis") bit into disposable income. During the first quarter, average daily volume in the UPS [domestic business fell 3% – driven](https://www.financedigest.com/turkeys-economy-grew-7-6-in-q2-driven-by-domestic-demand-exports.html "Turkey’s economy grew 7.6% in Q2 driven by domestic demand, exports") by a 7.4% drop in residential deliveries. COVID variant outbreaks, record gas [prices and political uncertainty fueled by Russia’s war on Ukraine drove the decline from last year’s stimulus check-fueled volume boom](https://www.financedigest.com/uk-house-prices-end-2022-on-a-weaker-note-after-pandemic-boom.html "UK house prices end 2022 on a weaker note after pandemic boom"), executives said. Still, UPS reported first-quarter adjusted earnings of $3.05 per [share on revenue of $24.4 billion](https://www.financedigest.com/novartis-launches-new-11-billion-share-buyback.html "Novartis launches new billion share buyback"). Those results topped analysts’ average targets for earnings of $2.88 per [share and revenue](https://www.financedigest.com/orpea-shares-jump-on-q4-revenue-and-cash-boost.html "Orpea shares jump on Q4 revenue and cash boost") of $23.78 billion. (Reporting by Kannaki Deka in Bengaluru and Lisa Baertlein in [Los Angeles; Editing by Shounak Dasgupta, Anil D’Silva and Lisa Shumaker)](https://www.financedigest.com/patsnap-circumnavigates-northern-hemisphere-with-launch-of-los-angeles-office.html "PatSnap circumnavigates northern hemisphere with launch of Los Angeles office") --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---