UPS Earnings: Package Margins Disappoint; Management Tempers Guidance

UPS' first-quarter top line fell 5% year over year (removing foreign exchange), below our forecast on lower-than-anticipated U.S. domestic package activity. Relative to first-quarter 2022, the revenue decline stems from falling package volumes along with rate and demand normalization for the truck brokerage and global forwarding operations, partly offset by higher fuel surcharges and core pricing gains in the package segments (adjusted package yield was up about 4.5%).