UPS Expected to Report Decreased Earnings
Analysts on Wall Street anticipate that United Parcel Service (UPS) will disclose quarterly earnings of $1.56 per share in its upcoming financial report, marking a notable decrease of 12.9% compared to the previous year. Revenue projections are set at $20.85 billion, reflecting a decline of 4.4% from the same quarter in the prior year. In the past month, the consensus earnings per share (EPS) estimate has been revised downward by 1.5%, indicating a shift in analysts’ assessments of the company’s performance. Prior to the release of earnings, it is crucial to consider any adjustments made to these projections, as they can significantly influence investor sentiment towards the stock. Historical data underscores a strong correlation between changes in earnings estimates and short-term stock price movements.
Revisiting Key Financial Metrics for UPS
While investors typically reference consensus estimates for earnings and revenue to evaluate a company’s quarterly performance, examining specific metrics that analysts track can provide a deeper understanding. With this in mind, let’s explore the average estimates for several key UPS metrics that are closely monitored by Wall Street experts. Analysts predict that ‘Revenue- Supply Chain Solutions’ will reach $2.78 billion, indicating a year-over-year decline of 16.4%. The anticipated ‘Revenue- International Package’ is estimated at $4.25 billion, reflecting a decrease of 2.9% from the previous year. For ‘Revenue- U.S. Domestic Package,’ the consensus estimate stands at $13.83 billion, which shows a drop of 2.1% compared to the same quarter last year.
Further Metrics Show Mixed Results
According to analysts, the expected ‘Revenue- International Package- Cargo and other’ is projected at $164.91 million, suggesting a modest year-over-year increase of 1.2%. The forecast for ‘Average revenue per piece – International Package – Total’ is set at $20.58, down from last year’s figure of $21.42. Analysts also predict that the ‘Average daily package volume – International Package – Export’ will reach 1.60 million, slightly above last year’s volume of 1.58 million. Additionally, the forecast for ‘Average daily package volume – International Package – Domestic’ is 1.49 million, consistent with the previous year’s figure.
Analysts Optimistic on Domestic Package Revenue
Regarding the U.S. domestic metrics, analysts expect the ‘Average revenue per piece – U.S. Domestic Package – Ground’ to hit $11.47, up from $10.92 a year ago. The overall expectation for ‘Average revenue per piece – U.S. Domestic Package – Total’ is projected at $13.15, an increase from $12.35 in the same quarter last year. For ‘Average revenue per piece – International Package – Domestic,’ analysts estimate a slight dip to $8.02 from $8.10 last year. Conversely, the expected ‘Average revenue per piece – International Package – Export’ is $32.34, down from $33.90 in the same quarter of the prior year. The average estimate for ‘Average daily package volume – International Package – Total’ is set at 3.09 million, a slight increase from 3.07 million in the previous year.
UPS Stock Performance and Outlook
In the last month, UPS shares have experienced a return of +4.2%, compared to a +5.7% increase for the Zacks S&P 500 composite. Currently, UPS holds a Zacks Rank of #4 (Sell), indicating a potential underperformance relative to the broader market in the near term.
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