United Parcel Service (UPS) Reports Earnings Tomorrow: What To Expect
Parcel delivery company UPS (NYSE:UPS) will be reporting earnings this Tuesday before the bell. Here’s what to look for.
United Parcel Service beat analysts’ revenue expectations last quarter, reporting revenues of $21.2 billion, down 1.6% year on year. It was a satisfactory quarter for the company, with a beat 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, the market is expecting United Parcel Service’s revenue to grow 3.1% year on year, a reversal from the 2.7% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. United Parcel Service has missed Wall Street’s revenue estimates multiple 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 delivered year-on-year revenue growth of 12.5%, beating analysts’ expectations by 4.3%, and Knight-Swift Transportation reported revenues up 12.6%, topping estimates by 2%. FedEx’s stock price was unchanged after the resultswhile Knight-Swift Transportation was down 4.9%.
Read our full analysis of FedEx’s results here and Knight-Swift Transportation’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the transportation and logistics stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. United Parcel Service is up 6.1% during the same time and is heading into earnings with an average analyst price target of $115.04 (compared to the current share price of $114.71).
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