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Shares of United Parcel Service (NYSE: UPS ) got folded, spindled, and mutilated Friday, when the shipping company pre-announced second-quarter earnings numbers that fell far short of analyst expectations.
In Friday's announcement, UPS advised that, when it releases its official Q2 numbers on Tuesday, July 23, it expects to report earning $1.13 per share for the quarter. Analysts had been expecting $1.20 per share.
"Overcapacity in the global air freight market, increasing customer preference for lower-yielding shipping solutions, and a slowing U.S. industrial economy" will be blamed for preventing the company from earning as much as it had hoped to.
Furthermore, as such trends persist, and as the broader economy suffers "downward revisions" in the second half of the year, management is ratcheting back its prediction for full-year profit to a range of from $4.65 to $4.85 per share, a 3% to 7% increase over last year's net profit.
Result: UPS shares ended the day down 5.8%, at $86.12.