Earnings Preview: United Parcel Service

United Parcel Service (UPS) is expected to report Q3 earnings before the market open on Thursday, October 22 with a conference call scheduled for 9 am ET.

Guidance

Analysts are looking for EPS of 52c on revenue of $11.17B. The consensus range is 45c-55c for EPS, and revenue of $10.57B-$11.64B, according to First Call. UPS reaffirmed its Q3 EPS guidance when it reported its Q2 results, expecting Q3 EPS of 45c-55c. The company has had a difficult time in the economic slow down, as people tend to ship less in a weak economy. In an effort to combat the shipping slowdown, UPS has worked hard to cut costs in Q3.

Analyst Views

In mid September the company was upgraded to Neutral from Underperform at Credit Suisse. The firm upgraded United Parcel Service citing valuation and the improving freight environment for the upgrade, and raised its target to $61 from $48.