Recent Developments: UPS has faced a challenging second quarter in 2024, reporting a slight decrease in revenue to $21.8 billion, down 1.1% from the previous year. The company’s operating profit also saw a significant drop, particularly in its U.S. Domestic and International segments. Despite these challenges, UPS has maintained a strong focus on its cost-cutting initiatives and continues to expect full-year revenue of approximately $93 billion.

Investment Considerations:

• Operational Adjustments: UPS is actively managing its margins and focusing on long-term profitability through cost efficiencies.

• Dividend Commitment: UPS continues to demonstrate shareholder commitment, maintaining its quarterly dividend at $1.63 per share.

• 2024 Outlook: The company’s full-year guidance reflects cautious optimism, with expectations for improved operating margins and strategic investments in capital expenditures.

Risks:

• Global Economic Uncertainty: Ongoing macroeconomic factors could continue to pressure revenue and profitability, particularly in the company's core delivery segments.