UPS Cuts Forecast After Reaching New Labor Deal

The company has revised its full-year profit forecast due to labor negotiations with Teamsters, impacting both volume and costs. Despite an initial drop in stock price, investors were not surprised given the publicized dispute. The company is adjusting its operating margins and revenue forecast, citing both labor issues and consumer trends like reduced online shopping. The stock has been underperforming compared to the S&P 500 and remains in a narrow trading range.

What factors contributed to the company's decision to cut its full year profit forecast?

How did the stock perform in the pre-market before the announcement?

What was the percentage decrease in the company's full year forecast?

What impact did labor negotiations have on the company's revenue and costs?

What trends in consumer behavior were mentioned that could affect the company's performance?