Shares of United Parcel Service (UPS) sank over 16% Thursday to lead 澳洲幸运5官方开奖结果体彩网:S&P 500 decliners after the shipping giant reported 澳洲幸运5官方开奖结果体彩网:worse-than-expected fourth-quarter results.

The company reported net income of $1.72 billion, or $2.01 per share, on $25.3 billion in revenue. Analysts had expected profit of $2.14 billion, or $2.51 per share, on revenue of $25.35 billion, per Visible Alpha.

After stripping out $639 million in charges that were mostly related to pensions, UPS reported adjusted 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) of $2.75, above the $2.51 per share analysts had expected.

UPS Cuts Business With Amazon

UPS said it has "reached an agreement in principle with its largest customer to lower its volume by more than 50% by the second half of 2026." In previous annual reports, UPS identified Amazon (AMZN) as its largest customer, which represented nearly 12% of its consolidated 2023 revenue.

In Thursday's earnings call, CEO Carol Tomé confirmed Amazon is the customer in question. She said the online retail giant is "is our largest customer but it's not our most profitable customer," according to a transcript provided by AlphaSense.

Tomé said that as the Amazon revenue winds down, UPS will be able to improve its margins by focusing on more profitable projects, adding that Amazon again was responsible for 11.8% of the company's revenue in 2024.

UPS expects 2025 revenue to be roughly $89 billion, below the more than $95 billion analysts had projected. The firm also said it is starting "multi-year 'efficiency reimagined' initiatives" that are expected to generate about $1 billion in savings.

The results marked a 澳洲幸运5官方开奖结果体彩网:second straight quarter of year-over-year revenue and profit growth for UPS, which—like 澳洲幸运5官方开奖结果体彩网:shipping rival FedEx (FDX)—saw 澳洲幸运5官方开奖结果体彩网:several quarters of declines following reco⭕rd demand during the pandemic.

UPS shares, which entered Thursday down▨ about 15% over the last 12 months, sank more than 16% to $111.56, their lowest level since 2020.

UPDATE—This article has been updated with the latest share price and information from the company's earnings call.