Parcel delivery company UPS (NYSE: UPS) will be reporting earnings this Tuesday before market open. Here’s what you need to know.
United Parcel Service beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $21.55 billion, flat year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ sales volume estimates and an impressive beat of analysts’ EBITDA estimates.
Is United Parcel Service a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting United Parcel Service’s revenue to decline 4.4% year on year to $20.87 billion, a further deceleration from the 1.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.57 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 10 downward revisions over the last 30 days (we track 17 analysts). United Parcel Service has missed Wall Street’s revenue estimates six times over the last two years.
Looking at United Parcel Service’s peers in the transportation and logistics segment, some have already reported their Q2 results, giving us a hint as to what we can expect. FedEx posted flat year-on-year revenue, beating analysts’ expectations by 1.9%, and Saia reported flat revenue, topping estimates by 1.2%. FedEx traded down 3.2% following the results.
Read our full analysis of FedEx’s results here and Saia’s results here.
There has been positive sentiment among investors in the transportation and logistics segment, with share prices up 6.8% on average over the last month. United Parcel Service is up 2.5% during the same time and is heading into earnings with an average analyst price target of $113.27 (compared to the current share price of $103.50).
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