Parcel delivery company UPS (NYSE:UPS) will be announcing earnings results tomorrow before market hours. Here’s what investors should know.
United Parcel Service beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $22.25 billion, up 5.6% year on year. It was a strong quarter for the company, with 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 grow 1.7% year on year to $25.35 billion, a reversal from the 7.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.53 per share.
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.
Looking at United Parcel Service’s peers in the transportation and logistics segment, some have already reported their Q4 results, giving us a hint as to what we can expect. FedEx posted flat year-on-year revenue, missing analysts’ expectations by 0.7%, and Union Pacific reported flat revenue, falling short of estimates by 0.5%. FedEx’s stock price was unchanged after the results, while Union Pacific was up 5.6%.
Read our full analysis of FedEx’s results here and Union Pacific’s results here.
There has been positive sentiment among investors in the transportation and logistics segment, with share prices up 3.6% on average over the last month. United Parcel Service is up 7.9% during the same time and is heading into earnings with an average analyst price target of $148.62 (compared to the current share price of $135.42).
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