UPS stock down before market open as company gives softer-than-expected full-year revenue outlook

UPS slid before the opening bell after a mixed quarter and an outlook for this year that was weaker than expected.

Last year union members at UPS voted to approve a tentative contract agreement, putting a final seal on contentious labor negotiations that threatened to disrupt package deliveries for millions of businesses and households nationwide.

United Parcel Service Inc. anticipates 2024 revenue in a range of approximately $92 billion to $94.5 billion.

Analysts surveyed by FactSet predict revenue of $95.51 billion.

UPS also posted fourth-quarter revenue of $24.92 billion, below analysts' estimates of $25.31 billion and a decline of 7.8% from the prior year.

Earnings for the quarter ended in December slid by more than half to $1.61 billion, or $1.87 per share, from $3.45 billion, or $3.96 per share. On an adjusted basis, quarterly earnings per share totaled $2.47, a penny above the average estimate, according to FactSet.

The company's board approved an increase of 1 cent in its quarterly dividend to $1.63 per share, payable March 8 to shareholders of record Feb. 20.

Shares of UPS dropped 7% in premarket trading.