Barclays take on UPS (why the world is going to doo doo imo)

[HubBub]

"Barclays analysts note that despite the fact that UPS is outgrowing FedEx, it is not able to convert that growth into EPS – meaning that the company is trading at a lower price and profitability.

Barclays analysts point to UPS’s obsessive, customer-first mentality as the problem.

“We are concerned the relentless focus on maintaining service and share with competitors could leave profitability in a lurch beyond the next few quarters,” the note said."

 

[Brownslave688]

"Barclays analysts note that despite the fact that UPS is outgrowing FedEx, it is not able to convert that growth into EPS – meaning that the company is trading at a lower price and profitability.

Barclays analysts point to UPS’s obsessive, customer-first mentality as the problem.

“We are concerned the relentless focus on maintaining service and share with competitors could leave profitability in a lurch beyond the next few quarters,” the note said."

Lol.

It's because we are an old company. Amazon spends more than they make every quarter for growth and servicing customers. Yet they are loved.

 

[3 done 3 to go]

For some reason the market loves fed ex. They can do no wrong. Ups is the red headed step child. Always blamed for poor fed ex

 

[Brownslave688]

For some reason the market loves fed ex. They can do no wrong. Ups is the red headed step child. Always blamed for poor fed ex

Well paid Union labor probably has a lot to do with that. Add on the FedEx "independent contractor" model and I understand why Wall Street loves them.

 

[3 done 3 to go]

Well paid Union labor probably has a lot to do with that. Add on the FedEx "independent contractor" model and I understand why Wall Street loves them.

With all the trucks going to the same houses. I don't see how they can make money? Separate books. Cost effective. I can't see it as it is

 

[joeboodog]

Being customer driven is a negative? Seriously? Customers may not sign the paycheck but they make sure the funds are there to cover it.

 

[brownmonster]

Since when are we customer driven?

 

[PiedmontSteward]

Lol.

It's because we are an old company. Amazon spends more than they make every quarter for growth and servicing customers. Yet they are loved.

Amazon is literally hemorrhaging cash every quarter and they're considered a top-level Wall Street prodigy.

UPS (to their credit) pulled out all the stops to make sure Peak 2013 doesn't happen again and they take a beatdown for being less profitable.. which means we're going to take a beatdown for UPS being less profitable. We're already seeing it in the building (write-ups for any supervisors allowing a part-timer to hit time and a half, no OT for the maintenance guys, etc.)

 

[sortaisle]

I think I don't care. Next peak will be right back to what we did before with next to no help. UPS is hardly stupid (well...Wall Street stupid anyway) and their profits are still there. The idea of losing profits is ridiculous. They still are going to profit in the multi billions this quarter.

 

[Returntosender]

Perhaps UPS should follow Apple. Give low ball earnings estimates than over deliver on earnings.

 

[Wally]

I predict fifty years from now, Barclays analysts will credit UPS’s obsessive, customer-first mentality as the reason for their long term success.

 

[The Blackadder]

"Barclays analysts note that despite the fact that UPS is outgrowing FedEx, it is not able to convert that growth into EPS – meaning that the company is trading at a lower price and profitability.

Barclays analysts point to UPS’s obsessive, customer-first mentality as the problem.

“We are concerned the relentless focus on maintaining service and share with competitors could leave profitability in a lurch beyond the next few quarters,” the note said."

I would not worry about customer-first mentality, once everyone gets Orion all that matters is miles and trace. The customer if they are lucky will be in the top 3

 

[oldngray]

UPS doesn't have the fanatics like Amazon and Apple do who are loyal despite what the numbers show. UPS has to survive on real world earnings. And that incentive to please the stockholders at the expense of everything else the company once stood for is slowly destroying UPS. The decline started when the stock went public and control shifted to outsiders who don't care about the delivery business or providing service to customers.

 

[Bottom rung]

Wait until they release earnings from when the dim weight pricing started.

 

[ViewAskew]

Wait until they release earnings from when the dim weight pricing started.

This. I've seen a couple of long time, smaller shippers leave us this month because of this.

 

[Overpaid Union Thug]

If we could get a CEO that truly believes in customer service FIRST and not expensive and unreliable new technology then UPS would be the envy of all others.

 

[Packmule]

If we could just see the value in not making promises we can't keep-- and more importantly--allowing shippers to make promises we can't keep, we could win this game.

 

[Brownslave688]

This. I've seen a couple of long time, smaller shippers leave us this month because of this.

To who? FedEx is doing it also.

It makes sense to me. The more room your package takes up the more it should cost. Same reason I am all
For hiking prices at peak time. When demand is high prices go up.

 

[UpstateNYUPSer(Ret)]

For hiking prices at peak time. When demand is high prices go up.

This would be like jacking up the prices on generators during an extended weather emergency.

There is a term for that----price gouging.

 

[Turdferguson]

This would be like jacking up the prices on generators during an extended weather emergency.

There is a term for that----price gouging.

Huge difference between an emergency price gouging and someone waiting to the last minute to ship a Christmas present. Ordering stuff online and have it shipped to you is a luxury not something you need