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United Parcel Service, Inc. (UPS)

NYSE - NYSE Delayed Price. Currency in USD
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161.47+3.64 (+2.31%)
At close: 4:03PM EST
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  • N
    Nate
    I think everybody by now understands UPS is a sorry stock. If you are investing for the future this company had a bump recently but I believe there share price will stay stagnant for long term investors.Sell and buy a FANG stock! All I see is Amazon trucks these days!!!!!
  • D
    Dudesbag
    Here's a general question. Now that UPS has decided to sell its freight division, do we have a partner that will work with us to provide that service to valuable customers who are mostly package but have some freight needs too? It seems we'd like to accommodate them in a reasonable and profitable way. Obviously, FDX can do that internally and to be a true solutions company we need the same level of service. Can someone in the know discuss this?
  • J
    J.C.
    Did you read the article by Paul Ziobro in the WSJ on Carol Tome? If not, you should read it and then ask yourself if Carol Tome is going to be a really good CEO, or was just a really good CFO that should have stayed retired. Based upon this article, Carol Tome is only interested in being "better, not bigger," saying NO to large customers with marginal profitability, charging higher prices because of the huge B2C growth and limited capacity, getting rid of marginally profitable segments like UPS Freight, and improving mix of middle market customers. Everything you would expect a CFO to say, but NOT what you'd expect the CEO of the largest international logistics company that generates roughly $5 billion a year in free cash flow to say! I may have to read the article again, but don't recall reading anything about: her vision to expand internationally where they don't have a good footprint today; what service offerings they need to improve, such as reverse logistics and providing middle market customers with access to competitively priced warehouse space; what opportunities artificial intelligence, autonomous driving vehicles, alternative fuel vehicles, robots, drones, and eCommerce platforms to help middle market customers compete against the Walmarts and Amazons of the world; enabling middle market customers to leverage UPS buying power for select goods and services in return for volume commitments; requiring suppliers to give them warrants to acquire equity in return for helping the suppliers do their R&D and testing. Carol Tome is VERY fortunate that David Abney and the Board made significant capital investments in the past few years to expand brick and mortar capacity and further automate many cross dock operations. Had Abney not done that, UPS would not have been able to take full advantage of the significant growth that materialized from the pandemic. Carol Tome was at the right place at the right time. Raising prices on customers, and dumping low margin customers when you have no available capacity is what any recent graduate from business school would know how to do. The only decisions that she's made thus far based upon this article besides raising prices were: 1) selling off UPS Freight because it had a low profit margin, and she presumably didn't know how to fix it so that it could operate with strong profit margins like FedEx Freight does; 2) allowing management employees to work from home during pandemic, just like vast majority of other companies did; and 3) changing the appearance policy so that workers could finally wear beards, grow afros, and have braids in their hair. Hopefully, Carol Tome will grow into her new CEO position, but at 64 years old that's unlikely.
  • M
    Matt
    The recent UPS stock price stagnation is a result of the new CEO signaling retreat on company growth.......her "smaller is better" statement apparently includes stock price!
  • R
    Rev
    FDX up ... UPS down, its time to unionize FEDX and Amazon!
  • D
    Donald
    I guess if the market made any sense we'd all be rich. It doesn't and we're Not
  • G
    Gary
    New version of capital gains tax passes Washington Senate committee .... the govt needs you ...and your money
  • J
    J.C.
    Kudos to UPS Board for only authorizing a penny increase in their quarterly dividend! It's hard to believe, some would say criminal, that UPS currently has nearly $28 billion in debt and a negative tangible book value of nearly $5 billion after having annual free cash flow of around $4 to $5 billion for past several years. The Board and prior CEO's, with exception of David Abney, were completely negligent and derelict in their duties to wisely use their free cash flows to make prudent investments in the U.S. as well as around the world to expand their footprint, expand their service offerings, and increase their capacity. Instead, they buried their heads in the sand and chose to use nearly all of their free cash flow to fund higher dividends, stock buybacks, and fund their pension plans! With the explosion of B2C over the past several years, including heavy goods in recent years, shouldn't UPS now have the premier last mile heavy goods network instead of XPO? Instead of investing in UPS Freight to modernize their facilities, equipment, and technology to become a premier LTL and eCommerce last mile provider they starved that company of capital, appointed rejects from their Package company to lead UPS Freight's Engineering and I.T. functions, and then decided to dump it! With millions of shipments purchased online that end up being returned by the customer, as well as many commercial shipments refused by the consignee for a variety of issues...shouldn't UPS now have the premier Reverse Logistics solution and network built by now? UPS has been claiming that they want to cater more to the high margin Middle Market customer base than the very low margin Enterprise customer base, yet what have they done to make it much more easier for Middle Market customers to compete against the Amazon's and Walmarts of the world? Did they developed a platform like Amazon or Shopify for Mid Mkt customers, or build out a network of commercial warehouses that Mid Mkt customers could lease space from at competitive price, or add business development experts to select UPS Stores to advise and consult with Mid Mkt customers, or enable Mid Mkt customers to leverage their buying power with UPS vendors, etc? Have they invested heavily in autonomous driving vehicles and robots, and do they make suppliers give them warrants to acquire equity ownership in return for investing in prototypes and R&D assistance? The clock is ticking and UPS could easily become a Kodak, Polaroid, TWA, Compaq Computer, etc down the road, particularly given their unionized very high cost structure. They should have hired an innovator from Amazon, Google, or Apple rather than a former CFO from Home Depot to be their CEO. Other recent executives they've hired from the outside came from companies like Xerox and ADM, which doesn't make any sense if you truly wanted to transform your company!
  • D
    Dudesbag
    I was just listening to a guest on CNBC. He was discussing the difficulty that companies in general have in being able to envision the economy going forward. The fits and starts of the vaccination programming and the variant strains of the virus cause uncertainty and make the issue of consumer spending, the linchpin of the economy, unpredictable at best. I think if we throw that factor in with the issue of Amazon becoming a larger share of our overall volume, it all becomes unsettling. We know the end result of the FDX/Amazon relationship and what might ours be? There was just a story about Carol and the board re-evaluating our steps forward- how to best position ourselves for an evolving future. I guess this is a long-winded way of saying that the dividend decision (although not what we've been used to by any stretch) could certainly be construed as financially responsible. Thoughts?
  • L
    Laurence
    Sorry, but dividend is a HUGE disappointment. $1.02 with the stock price what it is and the year UPS had?
    it rose .05 cents from 2019 to 2020. Would love to hear the reasoning for only a cent this year. Certainly won't make it any more appealing to new investors.
  • G
    Gary
    storms and rocketing oil/gas prices ..not a good situation for transport sector
  • J
    J.C.
    Glad to see that Carol is focused on smaller ,but better. One key component of that strategy is to focus on improving customer mix, i.e. grow middle market much faster than enterprise as the profit margins are significantly higher for middle market customers as they don't have the pricing power. One key action item to this strategy, based upon what I've heard, is to reduce their middle market sales force which they've been doing for past 2 to 3 years. Another key action item was to sell off their LTL solution as middle market customers presumably don't like to do business with fewer carriers to maximize their pricing power, and they also enjoy using more shipping solution technology platforms to manage their daily shipment activity rather than just one with UPS. Fewer sales people to call on the middle market customer to address their needs, less pricing power to negotiate more competitive bundled package and LTL agreements, and multiple shipping platforms making it harder for the traffic manager and warehouse personnel to manage their daily shipping activity. Now that sounds like a very sound strategy to improve the mix of middle market customers! What's next? Are they also going to slow down their transit times, and damage more shipments? Are they going to make their Customer Service even worse than it is today? I'll bet their next step will be to increase the Fuel Surcharge!
  • D
    Dudesbag
    UPS's tailwinds extend far beyond 2020.
    UPS's tailwinds extend far beyond 2020.
    www.msn.com
  • J
    John
    I used to see UPS and Fedex trucks going up and down my street all day. Now all I see are those blue Amazon vans.
  • J
    J.C.
    Carol Tome finally got to ride in a UPS package truck, and Accounting finally showed her the average age of their package fleet. To her surprise, UPS has been sweating the assets for many decades. Perhaps that's one of the primary reasons why UPS has a NEGATIVE $4.9 billion tangible book value at end of 2020 according to the balance sheet data you'll see if you click on the Finance tab above for UPS. Imagine that. After many years of around $5 billion annually in free cash flow, UPS has NEGATIVE tangible book value and TOTAL DEBT of nearly $28 billion. Where has all that free cash flow gone if UPS hasn't been investing it in building out their international footprint with more properties and equipment? The answer is dividends, stock buy backs, and funding the Teamster and management pension funds. Abney was first CEO in a looong time who actually opened up the check book and decided to invest in new facilities, automation, and Coyote Logistics. However, UPS went back to their old ways and not only appointed a former CFO who's afraid to make any significant investments to build out UPS's international network, because she wants to be "smaller and better", but who also has ZERO transportation experience. If UPS was intent on hiring someone without any transportation experience to get new blood and a different perspective, they should have hired an executive from Amazon, Apple, Google, or Tesla to shake things up. My sources say everyone at UPS likes Carol because she's not busting their balls, smiles a lot, and promotes family and work balance as opposed to the way former regimes ruled. Her timing was perfect as Abney had just invested BILLIONS in new facilities and automation, and the pandemic created a huge windfall. UPS could have left the CEO position vacant in 2020 and the results would have been the same! Tome should have been fired when she said she wants to be smaller and better!
  • B
    Bulldawg
    Two possible reasons for small dividend bump.....need cash for large recently announced bonuses, or, need cash for another buyout offer.
  • d
    david
    hard not to be optimistic about the quarter......not expecting a huge beat but expect every aspect of business running above expectations.....capital expenditure was heavy in 4th quarter as Tome said it would be but a 2.5 billion reduction next year, a weaker dollar,voluntary separation program, elimination of UPS freight, B2B resumption this next quarter, amazon to make prime 1 day service will be huge for UPS ,$1400 stimulus, extra surcharge for doing business, 2 billion lawsuit settlement. and i suspect a resumption of stock buybacks are huge tailwinds for UPS.....just beginning phase 2 of UPS transformation....as a long term moneymaker and huge growth potential its hard not to ;love the business we are in
  • D
    Dudesbag
    Love Tome's reference to "sweating the assets" as it relates to cargo planes. Modifying the systems panels of the planes to capture more flight data rather than retiring them or flying less efficiently. I'd like to think that much like Amazon, doing this would allow us to negotiate with a stronger hand on Boeing new plane purchases or acquiring existing assets from hurting airlines. Her thinking is much different from prior CEO's.
  • G
    Gary
    i think there should be employees of the rank and file required on all corporate boards. it shouldn't be all suits. the gov't should institute that requirement. the rank and file is responsible for 99.9% of the work and should have much more say in how things are run.
  • G
    Gary
    morgan stanley adjusts price target from $74 to $80. .. wells fargo adjusts from $184 to $193 ... credit suisse raises from $202 to $205 .. ubs adjusts to $205 from $210 .... they are all over the map ... can i have that job? just pick a number .. my price target, and i don't get paid for it, is $165 ...