United Parcel Service (UPS) Q1 Earnings: What To Expect

Parcel delivery company UPS (NYSE:UPS) will be reporting earnings tomorrow before market hours. Here’s what to expect.

United Parcel Service met analysts’ revenue expectations last quarter, reporting revenues of $25.3 billion, up 1.5% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but full-year revenue guidance missing analysts’ expectations significantly.

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 decline 2.8% year on year to $21.1 billion, improving from the 5.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.38 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 Q1 results, giving us a hint as to what we can expect. FedEx delivered year-on-year revenue growth of 1.9%, beating analysts’ expectations by 0.9%, and Ryder reported revenues up 1.1%, in line with consensus estimates. FedEx traded down 6.3% following the results while Ryder’s stock price was unchanged.

Read our full analysis of FedEx’s results here and Ryder’s results here.

Investors in the transportation and logistics segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. United Parcel Service is down 10.9% during the same time and is heading into earnings with an average analyst price target of $123.07 (compared to the current share price of $97.95).

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