UPS Reports Better Revenue, Lower Profit Than Expected
4 minutes ago
United Parcel Service (UPS) shares sank in recent trading after the shipping giant reported better second-quarter revenue than analysts had expected, but its profit fell short and it didn’t provide a new full-year outlook.
UPS on Tuesday posted adjusted earnings per share of $1.55 on revenue that fell about 3% year-over-year to $21.2 billion. Analysts surveyed by Visible Alpha had forecast $1.57 and $20.87 billion, respectively.
“Our second quarter results reflect both the complexity of the landscape and the strength of our execution,” CEO Carol Tomé said. “We are making meaningful progress on our strategic initiatives, and we’re confident these actions are positioning the company for stronger long-term financial performance and enhanced competitive advantage.”
UPS said it is not providing a revenue or profit forecast “given the current macro-economic uncertainty,” but said it expects about $3.5 billion in capital expenditures this year, along with $5.5 billion in dividend payments and $1 billion in stock buybacks, which it has already completed. Last quarter, UPS declined to provide an update, citing the same “macro-economic uncertainty,” after projecting about $89 billion in 2025 revenue in January.
UPS shares were down roughly 10% in intraday trading, putting them down more than 27% since the start of this year.
UPS last quarter announced plans to cut about 20,000 jobs this year as part of a cost-cutting effort to generate about $3.5 billion in long-term savings. Earlier this month, the company announced the opening of a voluntary driver buyout program that would pay $1,800 per year the employee has worked for UPS, with a minimum of $10,000, in addition to any earned retirement benefits.
Ahead of the report, UBS analysts cut their price target to $124 from $128 and lowered some profit estimates, as they said the closing of the de minimis exemption and other factors within the U.S. could impact shipping demand.
Meta Levels to Watch With Earnings Coming Wednesday
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Shares in Meta Platforms (META) were little changed in early trading Tuesday ahead of the tech giant’s highly anticipated quarterly earnings report, due after Wednesday’s close.
Investors will pay close attention to the company’s AI infrastructure spending plans after its Magnificent Seven rival, Google parent Alphabet (GOOGL), last week raised its 2025 capital expenditures projection by $10 billion to $85 billion. Meta has said it expects to spend $64 billion to $72 billion in capex this year, a figure Wells Fargo analysts expect to reach $76.7 billion in 2026.
The stock was down slightly at around $716 in recent trading, after gaining nearly 1% on Monday. Meta shares have risen about 22% since the start of the year, boosted by the company’s ongoing efforts to fortify its AI position among its big tech peers.
After hitting an all-time high last month, Meta shares have undergone a pullback toward the respected 50-day moving average (MA) ahead of the tech giant’s quarterly results. However, the relative strength index sits above neutral territory, indicating price momentum remains positive.
It’s worth pointing out that trading volume in the stock has remained subdued in recent months, suggesting that larger market participants are waiting for the company’s report before deploying further capital.
Investors should watch key overhead areas on Meta’s chart around $740 and $930, while also monitoring major support levels near $680 and $635.
Read the full technical analysis piece here.
Novo Nordisk Stock Plunges After Wegovy Maker Cuts Outlook
51 minutes ago
U.S.-listed shares of Novo Nordisk (NVO) sank in early trading after the Danish drugmaker cut its full-year outlook and named a new CEO.
Novo Nordisk, which makes blockbuster weight-loss drugs Ozempic and Wegovy, now expects 2025 sales growth at constant exchange rates of 8% to 14%, down from its early May forecast of 13% to 21%. It attributed the cut to lower growth expectations for Wegovy and Ozempic in the U.S. obesity and diabetes markets, respectively, and “lower-than-expected penetration” in some international markets.
Novo Nordisk named Maziar Mike Doustdar as its next CEO, effective Aug. 7, when he will replace Lars Fruergaard Jørgensen. In May, the company announced Jørgensen would be stepping down once a new chief executive was selected.
Novo Nordisk said that the sales outlook for Wegovy in the U.S. “reflects the persistent use of compounded GLP-1s, slower-than-expected market expansion and competition,” indicating that it belives some competing products are being sold illegally. The company sees 2025 operating profit growth, or EBIT, of 10% to 16%, down from its prior projection of 16% to 24%.
U.S.-listed shares of Novo Nordisk were down 20% in recent trading. Coming into today, the stock had lost about about 20% since the start of the year and more than 45% over the past 12 months. The stock has been under pressure amid slowing sales growth and studies that showed the active ingredient in rival Eli Lilly’s (LLY) Mounjaro and Zepbound caused greater weight loss than that of Ozempic and Wegovy.
UnitedHealth Reports Weak Earnings, Cuts Profit Outlook
1 hr 41 min ago
Shares of UnitedHealth Group (UNH) fell in premarket trading Tuesday after the health insurance giant’s second-quarter profit came in worse than analysts had forecast.
The insurer posted adjusted earnings per share of $4.06 on revenue that increased about 13% year-over-year to $111.6 billion. Analysts polled by Visible Alpha had projected $4.64 and $111.88 billion, respectively.
After suspending its outlook when ex-CEO Andrew Witty departed in May, UnitedHealth reinstated its forecasts on Tuesday. The company now projects $445.5 billion to $448.0 billion in full-year revenue, while its estimates for EPS and adjusted EPS were slashed again by about $10 each to at least $14.65 and at least $16, respectively, citing “higher realized and anticipated care trends.”
UnitedHealth said it “expects to return to earnings growth in 2026.”
Last quarter, UnitedHealth’s stock plummeted 22%—its worst day since 1998—after the firm’s Q1 results came up short and it cut its 2025 adjusted EPS forecast to a range of $26.00 to $26.50 from the prior $29.50 to $30.00.
Shares were down about 3% in recent premarket trading. They entered the day down more than 40% since the start of this year, making the stock the biggest decliner in the Dow Jones Industrial Average in 2025.
Analysts have remained bullish on UnitedHealth’s stock despite disappointing results, a sudden CEO change, and a Department of Justice investigation into its billing practices.
Major Index Futures Point to Higher Open
2 hr 10 min ago
Futures tied to the Dow Jones Industrial Average were up 0.1%.
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S&P 500 futures rose 0.3%.
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Nasdaq 100 futures added 0.5%.
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