UPS investors should be wary of the shipping company after it lowered its fourth-quarter guidance, Jim Cramer said.
"I found this disturbing," Cramer said on CNBC's "Squawk on the Street" Friday. "They spent a fortune trying to get the holiday season right last year, and they failed. Now they tried to get it right this year, and they failed."
Cramer made his remarks after UPS cut fourth-quarter guidance, with the company citing underperformance of its U.S. domestic segment. UPS' stock plummeted about 10 percent before the bell Friday following the announcement. "This is just a big disappointment and I get why the stock is down so much," Cramer said. "They should be in the sweet spot."
Cramer also called the shipping company's leadership into question. "This is the kind of thing that makes you say, 'where's the board?'" he said. "The board has to look at what happened and make tough decisions."
"Clearly, our financial performance during the quarter was disappointing," UPS CEO David Abney said in a statement. "UPS invested heavily to ensure we would provide excellent service during peak when deliveries more than double. Though customers enjoyed high-quality service, it came at a cost to UPS."
The Atlanta-based company will release last quarter's earnings on Feb. 3.
DISCLOSURE: When this story was published, Cramer's charitable trust owned UPS stock.