United Parcel Service (UPS) reports earnings tomorrow: what to expect
Parcel delivery company UPS (NYSE:UPS) will be announcing earnings results this Tuesday before the bell. Here’s what you need to know.
United Parcel Service beat analysts’ revenue expectations last quarter, reporting revenues of $22.83 billion, up 7.6% year on year. It was a very strong quarter for the company, with full-year EPS guidance slightly topping analysts’ expectations and full-year revenue guidance slightly topping analysts’ expectations.
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 3.6% year on year, a reversal from the 3.7% 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 rarely misses Wall Street’s revenue estimates.
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. CSX delivered year-on-year revenue growth of 12%, beating analysts’ expectations by 1.8%, and Ryder reported revenues up 8.3%, topping estimates by 1.2%. CSX traded up 6.8% following the results while Ryder was also up 12.7%.
Read our full analysis of CSX’s results here and Ryder’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). 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 4.9% on average over the last month. United Parcel Service is up 7.2% during the same time and is heading into earnings with an average analyst price target of $113.69 (compared to the current share price of $101.00).
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