UPS Shares Plunge 10% Amid Earnings Miss and Macro Uncertainty

United Parcel Service (UPS) saw its stock tumble nearly 10% after reporting disappointing quarterly earnings and refraining from issuing full-year guidance. The logistics giant posted $1.55 per share in Q1 2025, falling short of the $1.57 consensus estimate and marking a decline from $1.79 per share a year prior. Revenue dipped 3% year-over-year to $21.2 billion, though narrowly beating expectations.

The transportation sector continues grappling with macroeconomic headwinds - from inventory drawdowns by major shippers to disrupted trade flows from escalating tariffs. CEO Carol Tomé described operating in a "dynamic and evolving trade environment," with no clear resolution in sight. While UPS completed $1 billion in share repurchases, its lack of forward guidance signals persistent uncertainty.

Year-to-date, UPS has shed 26% of its value. Though positioned as a critical node in global supply chains, the company's recovery timeline remains opaque. Investors face mounting pressure as 2025's early bets on normalization continue to sour across the transport sector.