United Parcel Service, Inc. (NYSE:UPS) stock fell 0.68% (As on August 8, 11:34:10 AM UTC-4, Source: Google Finance) after the company posted mixed results for the second quarter of FY 23. The company has lowered its 2023 revenue forecast, hurt by softening e-commerce demand and an improved labor contract it offered to workers. Consolidated operating profit was $2.8 billion, down 21.4% compared to the second quarter of 2022, and down 18.4% on an adjusted basis. U.S. Domestic Segment revenue decreased 6.9%, driven by a 9.9% decrease in average daily volume, which was partially offset by a 3.3% increase in revenue per piece. The segment’s adjusted operating margin was 11.7%. International Segment’s revenue decreased 13.0%, primarily driven by a 6.6% reduction in average daily volume and continued softness on Asia trade lanes. The segment’s adjusted operating margin was 20.4%. Supply Chain Solutions’ Revenue decreased 23.4% due to market rate and volume declines in forwarding, partially offset by growth in logistics, including healthcare. The segment’s adjusted operating margin was 10.4%.

UPS in the second quarter of FY 23 has reported the adjusted earnings per share of $2.54, beating the analysts’ estimates for the adjusted earnings per share of $2.51, according to Zacks Investment Research. The company had reported 10.9 percent fall in the adjusted revenue growth to $22.06 billion in the second quarter of FY 23, missing the analysts’ estimates for revenue of $22.88 billion.

Meanwhile, the company has win-win-win Labor Agreement Reached with Teamsters Covering More Than 300,000 UPS Employees.

Additionally, the company has announced its regular quarterly dividend of $1.62 per share on all outstanding Class A and Class B shares. The dividend is payable August 31, 2023, to shareowners of record on August 14, 2023.

UPS has updated its full-year 2023 consolidated revenue and adjusted operating margin targets primarily to reflect the volume impact from labor negotiations and the costs associated with the tentative agreement reached with the International Brotherhood of Teamsters on July 25, 2023. UPS now expects 2023 consolidated revenue to be about $93 billion, compared with its earlier forecast of about $97 billion. Analysts polled by Capital IQ are looking for $96.56 billion. The company expects an adjusted operating margin of around 11.8%. The company has reaffirmed its capital allocation plans and expects capital expenditures to be about $5.3 billion, dividend payments to be around $5.4 billion, subject to board approval, and share repurchases to be around $3 billion.