Parcel delivery company UPS (NYSE:UPS) will be reporting earnings this Tuesday before market open. Here’s what to look for.
United Parcel Service beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $21.22 billion, down 2.7% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ revenue estimates but a miss of analysts’ EPS estimates.
Is United Parcel Service a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting United Parcel Service’s revenue to decline 6.1% year on year to $20.89 billion, a reversal from the 5.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.31 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. United Parcel Service has missed Wall Street’s revenue estimates five times over the last two years.
Looking at United Parcel Service’s peers in the transportation and logistics segment, some have already reported their Q3 results, giving us a hint as to what we can expect. FedEx delivered year-on-year revenue growth of 3.1%, beating analysts’ expectations by 2.7%, and Ryder reported flat revenue, falling short of estimates by 0.7%. FedEx traded up 2.2% following the results while Ryder was down 11.7%.
Read our full analysis of FedEx’s results here and Ryder’s results here.
There has been positive sentiment among investors in the transportation and logistics segment, with share prices up 3.7% on average over the last month. United Parcel Service is up 3.4% during the same time and is heading into earnings with an average analyst price target of $99.13 (compared to the current share price of $87.34).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.