United Parcel Service plans to devote a larger chunk of its revenue to capital spending through 2026 as margin pressures from the costs of its labor contract begin to subside, CFO Brian Newman tells WSJ. The delivery giant expects capital spending between 2024 and 2026 to comprise about 5.5% of total revenue, up from 4.9% the prior comparable period. UPS and union leaders last summer agreed to a new five-year pact, the costs of which were particularly substantial in the first year. The company is continuing to cut costs and boost efficiencies, for example by shedding 12,000 jobs and expanding use of RFID technology, Newman says.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $148, cut $6, reflects a 15x multiple of our revised 2025 EPS estimate, in line with UPS’s historical forward average. We cut our 2024 EPS estimate by $0.96 to $8.36 and 2025’s by $0.71 to $9.89. UPS held an Investor Day event today, outlining strategic and financial targets through 2026. UPS has guided for 2026 revenues in the range of $108B-$114B, an implied CAGR of 6.8%, but also reiterated its 2024 revenue guidance of $92.0B-$94.5B. At the midpoint of these ranges, we note that the cadence of revenue growth guidance suggests just 2.3% in 2024, but then accelerating ~4x to the 9% range in 2025 and 2026, which we think is highly aggressive barring a major uptick in market volumes. On the margin