Analysts on Wall Street project that United Parcel Service (UPS) will announce quarterly earnings of $1.56 per share in its forthcoming report, representing a decline of 12.9% year over year. Revenues are projected to reach $20.85 billion, declining 4.4% from the same quarter last year.
Over the last 30 days, there has been a downward revision of 1.5% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
In light of this perspective, let's dive into the average estimates of certain UPS metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts forecast 'Revenue- Supply Chain Solutions' to reach $2.78 billion. The estimate suggests a change of -16.4% year over year.
According to the collective judgment of analysts, 'Revenue- International Package' should come in at $4.25 billion. The estimate indicates a year-over-year change of -2.9%.
The consensus estimate for 'Revenue- U.S. Domestic Package' stands at $13.83 billion. The estimate indicates a change of -2.1% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenue- International Package- Cargo and other' should arrive at $164.91 million. The estimate indicates a change of +1.2% from the prior-year quarter.
Analysts expect 'Average revenue per piece - International Package - Total' to come in at $20.58 . Compared to the current estimate, the company reported $21.42 in the same quarter of the previous year.
The consensus among analysts is that 'Average daily package volume - International Package - Export' will reach 1.60 million. The estimate compares to the year-ago value of 1.58 million.
Analysts predict that the 'Average daily package volume - International Package - Domestic' will reach 1.49 million. Compared to the current estimate, the company reported 1.49 million in the same quarter of the previous year.
Analysts' assessment points toward 'Average revenue per piece - U.S. Domestic Package - Ground' reaching $11.47 . The estimate compares to the year-ago value of $10.92 .
The combined assessment of analysts suggests that 'Average revenue per piece - U.S. Domestic Package - Total' will likely reach $13.15 . Compared to the present estimate, the company reported $12.35 in the same quarter last year.
It is projected by analysts that the 'Average revenue per piece - International Package - Domestic' will reach $8.02 . The estimate is in contrast to the year-ago figure of $8.10 .
The collective assessment of analysts points to an estimated 'Average revenue per piece - International Package - Export' of $32.34 . Compared to the present estimate, the company reported $33.90 in the same quarter last year.
The average prediction of analysts places 'Average daily package volume - International Package - Total' at 3.09 million. Compared to the current estimate, the company reported 3.07 million in the same quarter of the previous year.
View all Key Company Metrics for UPS here>>>
Over the past month, shares of UPS have returned +4.2% versus the Zacks S&P 500 composite's +5.7% change. Currently, UPS carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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United Parcel Service, Inc. (UPS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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