UPS shares rose nearly 5.8% on Oct. 27, the day of its third-quarter report, after adjusted EPS of $1.69 beat consensus by $0.06 and revenue of $22.9 billion topped expectations by over $600 million. The company raised its full-year outlook to $92.6 billion in revenue and roughly $8.75 billion in adjusted operating profit. Its “Efficiency Reimagined” turnaround cut 48,000 jobs in 2025 and 30,000 more earlier this year, while shifting toward higher-margin customers such as healthcare, small and mid-sized businesses, and data centers. Truist raised its price target by $5 to $120 and kept a buy rating. The author cites a 6.25% trailing dividend yield supported by expected adjusted free cash flow of $6.1 billion, and argues investors can buy the stock now.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
UPSearningsdividendsemployment
Open a keyword to see other news on the same topic.
Related news
- Is UPS Worth Betting on Post the Unveiling of Holiday Hiring Plans?
UPS plans to hire more than 100,000 seasonal workers for the holiday peak, and the article asks whether the stock is worth buying. Supporting factors include second-quarter 2026 Digital Access Program revenue of $1.4 billion, the $1.6 billion Andlauer Healthcare acquisition, and an Amazon glide-down that removed about 2 million low-yielding pieces per day, with 68.5% of U.S. volume now in automated buildings. Headwinds include U.S. average daily volume down 3.3%, International down 5.8%, and management guiding third-quarter U.S. volume down in the mid-single digits. The dividend has been held at $1.64 per quarter, and its payout ratio is well above the 50–60% long-term target, while higher oil prices add cost pressure.
- UPS Soars 6% on Raised Outlook as CEO Dispels Belief That “Volume Solves All Problems”
UPS shares rose 6% after third-quarter revenue grew 6.7% to $22.9 billion, above the $22.28 billion analysts expected, and adjusted EPS of $1.69 beat the $1.62 consensus. U.S. revenue per piece rose 6.1% even as average daily domestic volume fell 3% after UPS finished cutting Amazon deliveries, lifting adjusted domestic operating profit 14% to $1.03 billion. UPS raised its 2026 outlook to about $92.6 billion in revenue (from $91.2 billion), adjusted operating profit of about $8.75 billion, adjusted EPS of about $7.28 (from $7.22) and free cash flow of about $6.1 billion (from $5.5 billion), which covers the roughly $5.4 billion in planned dividends. Before the jump, UPS traded at 12.9x forward earnings versus a five-year average of 15.2x, and the article says the holiday quarter, with daily volume expected to fall 1.3%, is the next test.
- UPS Stock Is Down 57% From Its Record. Is It a Buy Before Its Oct. 27 Report?
UPS shares trade near $100, about 57% below their all-time closing high of $232.11, pushing the dividend yield to roughly 6.5% on a $1.64 quarterly payout. Management expects 2026 adjusted EPS of about $7.22, down about 44% from $12.94 in 2022, after the Amazon volume cut finished in June. In the second quarter, U.S. domestic revenue rose 6% and the segment's adjusted operating margin widened to 8%, helped by cost programs expected to deliver about $3 billion in 2026. Free cash flow is projected at about $5.5 billion against roughly $5.4 billion in dividends, and the stock trades near 13 times expected 2027 earnings versus about 19 times for the S&P 500. The author sees value for income investors willing to wait for the turnaround, though the Oct. 27 report and thin dividend coverage remain risks.
- Prediction: UPS Will Miss Estimates (but the Stock Could Still Be a Good Value)
The article argues UPS (NYSE: UPS) could miss earnings estimates in the third quarter and for 2026, even though its stock yields around 7%. It cites three risks: elevated fuel costs that could pressure margins, possible competition from Amazon that could hurt volume or pricing, and weak global e-commerce trends. In the first half of 2026, UPS raised fuel surcharges by a combined $1.173 billion, versus a $744 million increase in fuel and third-party fuel costs, a net difference of $429 million. E-commerce demand fell 7% year over year in May 2026, its sixth straight monthly decline. With Wall Street expecting 2026 EPS of $7.20 against a dividend per share of $6.56, the author suggests the dividend could come under threat and that waiting for the earnings report may make sense before considering a purchase.
- UPS Yields 6.7% After Firing Amazon. Here's Whether the Dividend Survives 2027.
UPS shares yield 6.7% as of October 16. The company has moved away from high-volume, low-margin Amazon deliveries and froze its dividend earlier this year, ending a 16-year streak of increases. The article says the payout will likely remain frozen through 2026 and 2027, citing competition from 10- and 30-year Treasury yields above 5% and other industrial dividend payers, but calls the dividend's safety questionable: UPS generated $5.47 billion in free cash flow in 2025, with $5.4 billion going to dividends, and free cash flow is projected to fall to $5.05 billion in 2026 and $5.01 billion in 2027, with the dividend absorbing about 98% of 2026 free cash flow. Rising competition and high fuel prices add pressure, and the article suggests investors may find more safety in the industrial sector.
- Better High-Yield Dividend Stock: Pfizer vs. UPS
Pfizer yields 6.3% and UPS yields 7.0%, and both raised their 2026 revenue guidance this summer. In the twelve months to June 2026, dividends took 89% of Pfizer's free cash flow and 99% of UPS's, leaving little cushion for either. Pfizer's Q2 2026 revenue rose 3% (1% operationally) as newer products grew 18%, while COVID-19 sales shrink and patent losses weigh on revenue through 2028; its CEO says dividend growth returns after that period. UPS's Q2 2026 revenue rose 7.6% to $22.8 billion after it finished cutting Amazon volume, though its dividend per share rose only 0.6% in fiscal 2025. The article concludes UPS is the better high-yield pick because of faster growth and lower leverage (1.63x vs 1.97x net debt/EBITDA), while noting Pfizer's dividend is better covered.
Related markets
Latest news
- Apple brings touch to the Mac, reversing years-old stance on touchscreen laptop
Apple has launched its first laptop with a touchscreen, the MacBook Pro with PROLED XDR Display, which uses OLED technology. It runs M5 Pro or M5 Max chips, is lighter than Apple's current pro laptops, and runs macOS. The 14-inch version starts at $2,899 and the 16-inch version costs at least $3,399, both notable price increases, with sales beginning November 6. This is Apple's third major product launch under CEO John Ternus, in a laptop market suffering one of its worst slumps, which analysts link to AI-driven memory shortages that have raised prices. IDC reported that total PC shipments fell 20% year over year in the third quarter, while Apple's shipments dropped 11%.
- MacBook Pro: Apple launches its first ever touchscreen Mac – and brings back iconic feature
Apple has launched a new MacBook Pro, its first Mac with a touchscreen, which also brings back the glowing Apple logo on the back. The laptop uses the PROLED XDR display, Apple's OLED branding, and is lighter than the previous version, which weighed about 3.5 pounds. To support touch, Apple redesigned macOS so content is easier to manipulate and strengthened the hinge so the screen stays steady when touched. The 14-inch version starts at $2,899 and the 16-inch at $3,399, compared with $1,999 for the non-touchscreen model, which has a less powerful chip. Apple executives, including new CEO John Ternus, had previously dismissed touchscreen Macs mainly over ergonomic concerns about reaching across the keyboard.
- Why F5 Stock Is Getting Crushed Today
F5 (FFIV) shares fell more than 19% intraday even though fiscal fourth-quarter revenue rose 13% year over year to $917 million and adjusted EPS of $4.42 beat estimates. Investors reacted to guidance suggesting slower growth and shrinking gross margins, and Piper Sandler downgraded the stock from overweight to neutral. The article argues the sell-off may be overdone, since shares were up nearly 80% year to date as of the previous close and were vulnerable to profit-taking. Evercore ISI, Barclays and Morgan Stanley raised their price targets after the report, and the analyst consensus target stood at $457.44 versus a price near $370.
- Apple unveils groundbreaking MacBook Pro with PROLED XDR Display and Touch for the first time on Mac
Apple has introduced the MacBook Pro with PROLED XDR Display, using tandem OLED technology, and it is the first Mac with Touch, in thinner and lighter designs. The display offers up to 2,000 nits peak HDR and SDR brightness, a 10,000,000:1 contrast ratio, a 120Hz refresh rate, and P3 and Adobe RGB color coverage. Powered by M5 Pro or M5 Max chips with up to 128 GB of unified memory and up to 16 TB of storage, the laptop offers up to 24 hours of battery life and brings the Dynamic Island to Mac. It comes in 14- and 16-inch models, with pre-orders starting October 28 and availability beginning November 6.
- Strategy Shareholders Approve Daily Dividends on Preferred Stock, With 99.3% in Favor
Strategy shareholders approved an amendment letting its four preferred stocks, STRF, STRC, STRK and STRD, accrue dividends every calendar day, including weekends and holidays, with 99.3% of votes cast in favor according to preliminary results. STRC will move first, with its first daily record date on November 1 and payment on November 2, while the other three switch over with a first record date on January 1 and payment on January 4, subject to filing amended terms for each stock. Record dates falling on non-trading days will be treated as the previous business day, so dividends are effectively grouped and paid on the next business day; for STRC, record dates rise from 24 a year to 365. STRC traded at $99.86 against its $100 par value, and last week Strategy paused Bitcoin purchases for the first time since mid-September to spend $204.9 million buying back STRC. Separately, Strategy faces possible removal from MSCI's widely tracked equity indexes, after MSCI finalized a rule treating companies whose balance sheets are dominated by a single asset as ineligible and will publish affected companies on November 11.
- Finance Minister: “Can Vietnam grow without FDI? The answer is simple: No way!”
At the Group 5 session on the draft amended Investment Law on 24/10, Finance Minister Ngô Văn Tuấn said Vietnam cannot reach double-digit growth without FDI. FDI disbursement reached about USD 21 billion in the first nine months of 2026, and the full-year target is at least USD 30 billion. Reaching double-digit growth would require total social investment of about 40% of GDP and an ICOR falling from 6.4 to 4.5–4.8, with 2026–2030 capital needs expected to be 2.67 times those of 2021–2025. He said incentives should shift toward high technology, R&D, and linkages between FDI firms and domestic businesses, as the global minimum tax reduces the effect of traditional tax incentives. As of August 2026, about 47,796 FDI projects were operating, with registered capital of roughly USD 561.6 billion.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.