UPS stock suffers biggest drop in 2 years as e-commerce surge is still causing problems

Shares of United Parcel Service suffered Tuesday their biggest one-day selloff in two years, as disappointing fourth-quarter results suggest the package-delivery giant was still having trouble adapting to the surge in online holiday shopping.

The results were also a stark reminder that not all business is good business.

UPS reported before the market open fourth-quarter adjusted earnings and revenue that missed expectations, primarily because of what Chief Executive David Abney described on a post-results conference call as “a significant shift in mix towards lower revenue products,” according to a transcript provided by FactSet.

E-commerce business increased sharply during the peak holiday season, as many expected it would, but by a lot more than UPS had anticipated.

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