UPS Customers Are Trading Down

United Parcel Service (UPS) customers are trading down, different awesome from nan second-quarter net play astir nan hunt for worth options crossed nan U.S. economy.

"We saw customers waste and acquisition down betwixt services," nan shipping giant's caller CFO Brian Dykes said connected a convention telephone Tuesday, a transcript of which was provided by AlphaSense. "Specifically, we saw customers displacement from aerial to crushed and from crushed to SurePost."

SurePost is nan company's "budget" business-to-consumer service. Newer e-commerce customers successful peculiar were "highly leveraging" SurePost, executives said connected nan call.

UPS 'Pricing Pressures Remain a Headwind,' CFRA Analysts Say

Shares of UPS were sinking Tuesday aft nan institution reported second-quarter profits that fell year-over-year and missed analysts' estimates while besides narrowing its income outlook. UPS "revenues fell successful nan U.S. contempt an e-commerce driven return to maturation successful volumes, indicating that pricing pressures stay a headwind to top-line description ," CFRA analysts wrote Tuesday.

FedEx (FDX) banal besides moved little Tuesday.

A scope of companies person highlighted some user and firm customers' hunt for lower-price options for equipment and services successful caller quarterly reports. Coca-Cola (KO) executives besides noted a "slightly greater" user attraction connected worth successful its at-home marketplace during its ain earnings convention telephone earlier today.