What Analysts Think of UPS Stock Ahead of Earnings
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Key Takeaways
- UPS is slated to post its fourth-quarter earnings report before the market opens Monday.
- Revenue and profit are expected to rise year-over-year for a second straight quarter after several quarters of declining sales.
- The shipping giant’s CEO said UPS was exiting a “challenging 18-month period” in its third-quarter report.
United Parcel Service (UPS) is set to report fourth-quarter earnings on Thursday morning, with analysts expecting the company to record a second straight quarter of year-over-year revenue and profit growth.
Analysts are mostly bullish on the shipping giant’s stock; among the 15 covering UPS who are tracked by Visible Alpha, 12 have “buy” ratings, along with two “hold” and one “sell.” Their consensus price target of $153.73 is more than 15% above the stock’s closing level Friday.
Analysts Expect Second Straight Quarter of Revenue, Profit Growth
UPS is expected to report net income of $2.14 billion, or $2.51 per share, on revenue of $25.35 billion, according to Visible Alpha. A year ago, it posted profit of $1.61 billion, or $1.87 per share, on revenue of $24.92 billion.
Meeting those estimates would mark a second straight quarter of year-over-year revenue and profit growth for UPS, which—like shipping rival FedEx (FDX)—saw several quarters of declines following record demand during the pandemic.
CEO Carol Tomé called the third quarter the end of a “challenging 18-month period” for UPS in its third-quarter report, when the company lowered its 2024 revenue outlook to $91.1 billion, down from about $93 billion previously.
UPS shares, which were up 2.5% intraday Monday, are down about 15% over the last 12 months.
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