Parcel delivery company UPS (NYSE: UPS) will be announcing earnings results this Tuesday morning. Here’s what you need to know.
United Parcel Service beat analysts’ revenue expectations last quarter, reporting revenues of $24.48 billion, down 3.2% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ adjusted operating income 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 for active Edge members.
This quarter, the market is expecting United Parcel Service’s revenue to decline 2.7% year on year, a deceleration from its flat revenue 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 to 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 Q1 results, giving us a hint as to what we can expect. FedEx delivered year-on-year revenue growth of 8.3%, beating analysts’ expectations by 2.1%, and Heartland Express reported a revenue decline of 19.7%, topping estimates by 2.6%. FedEx’s stock price was unchanged after the resultswhile Heartland Express was up 12.5%.
Read our full analysis of FedEx’s results here and Heartland Express’s results here.
There has been positive sentiment among investors in the transportation and logistics segment, with share prices up 15% on average over the last month. United Parcel Service is up 12.8% during the same time and is heading into earnings with an average analyst price target of $112.56 (compared to the current share price of $107.07).
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