United Parcel Service Earnings Preview

| About: United Parcel (UPS)

United Parcel Service, Inc. (UPS) is scheduled to report its Q2 2012 results on July 24, 2012, before the market opens. The street expects EPS and revenue of $1.17 and $13.70B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from UPS and the news from its closest competitors.

United Parcel Service, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last quarter it reported $1.00 EPS, failing to meet analyst estimates of $1.02.

United Parcel Service, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $1.17 based on 24 analysts' estimates, up from $1.07 a year ago. Revenue estimates are $13.70B, up from $13.19B a year ago. The median target price by analysts for the stock is $89.50.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On April 2, 2012, Argus reiterated Buy rating for the company.
  • On March 20, 2012, Stifel Nicolaus downgraded the company from Buy to Hold.
  • On January 30, 2012, Barclays Capital reiterated Overweight rating for the company.

Latest News

  • On June 5, 2012, Bridgeline Digital Inc and United Parcel Service announced that they have signed a multi-year agreement to offer B2B and B2C eCommerce web stores with an end-to-end offering comprised of Bridgeline's Total eCommerceSM solution and UPS logistics and fulfillment services.
  • On May 11, 2012, United Parcel Service announced it has the necessary financing in place for its intended recommended public offer for TNT Express NV (TNT Express).
  • On May 3, 2012, United Parcel Service announced that its Board of Directors declared a regular quarterly dividend and approved a $5 billion stock repurchase authorization.
  • On April 26, 2012, United Parcel Service reaffirmed fiscal 2012 guidance and expects diluted earnings per share (EPS) of $4.75-$5.00, an increase of 9%-to-15% over fiscal 2011.
  • On March 19, 2012, United Parcel Service and TNT Express NV jointly announced that they have reached agreement on a recommended all-cash public offer of EUR9.50 per ordinary share by UPS for TNT Express (the Offer).
  • On March 16, 2012, Reuters reported that United Parcel Service was in constructive talks to buy TNT Express NV and reiterated its intention to make an offer, having last month proposed a EUR9 per share deal worth EUR4.9 billion ($6.4 billion).
  • On March 12, 2012, Dow Jones reported that United Parcel Service announced that the Company does not intend to increase a bid offer of EUR 4,9 billion for the acquisition of the issued capital of TNT Express.
  • On February 17, 2012, TNT Express NV announced that the Company has received an unsolicited non-binding and conditional proposal from United Parcel Service for the acquisition of the whole of the issued capital of TNT Express at an indicative price of EUR 9 per ordinary share.
  • On February 15, 2012, United Parcel Service announced it had acquired Kiala, a firm based in Brussels that provides convenient delivery options to busy consumers purchasing goods over the Internet.
  • On February 15, 2012, United Parcel Service announced that for fiscal 2012, it expects earnings per share to increase somewhere between 9% and 15%, generating $4.75-$5 per share growth.
  • On February 9, 2012, United Parcel Service announced that it has increased the regular quarterly dividend by 9.6% to $0.57 per share from $0.52 on all outstanding Class A and Class B shares.
  • On January 31, 2012, United Parcel Service announced that for fiscal 2012, it expects earnings per share to be in the range of $4.75 to $5.00. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $4.80 for fiscal 2012.

Competitors

CH Robinson Worldwide (CHRW), Expeditors International of Washington (EXPD), FedEx Corporation (FDX), and Landstar System (LSTR) are considered major competitors for United Parcel Service and the table below provides the key metrics for these companies and the industry.

United Parcel Service, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

UPS ChartClick to enlarge

UPS data by YCharts

Competitors' Latest Development

  • On July 4, 2012, FedEx Corp announced that its FedEx Express business unit has completed the acquisition of Rapidão Cometa, one of the transportation and logistics companies in Brazil with revenues of more than $500 million in 2011.
  • On July 3, 2012, FedEx Corp announced that it has completed the acquisition of TATEX, a French business-to-business express transportation company.
  • On June 19, 2012, FedEx Corp announced that it projects earnings to be $1.45 to $1.60 per diluted share in the first quarter of 2013 and $6.90 to $7.40 per diluted share for fiscal 2013.
  • On June 14, 2012, FedEx Corp announced that FedEx Express business unit has completed the acquisition of the Polish courier company Opek Sp. z o.o. (Opek). The company operates an automated hub in Lomianki, near Warsaw, and additional hubs in Lodz and Katowice.
  • On May 29, 2012, FedEx Corp announced that it has signed an agreement to acquire the Brazilian transportation and logistics company, Rapidão Cometa Logística e Transportes SA. FedEx expects that the transaction will close in the third quarter of 2012.
  • On May 10, 2012, FedEx Corp announced that it has signed an agreement to acquire TATEX, a French business-to-business express transportation company. The acquisition represents the latest FedEx investment in delivering sustainable growth in Europe.
  • On May 3, 2012, Expeditors International of Washington, Inc. announced that its Board of Directors has declared a semi-annual cash dividend of $.28 per share, payable on June 15, 2012, to shareholders of record as of June 1, 2012.
  • On April 26, 2012, Landstar System, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.055 per share. The dividend is payable on June 1, 2012 to stockholders of record at the close of business on May 10, 2012.
  • On April 20, 2012, Expeditors International of Washington, Inc. announced that preliminary results indicate its first quarter 2012 net earnings attributable to shareholders are expected to fall in the range of $.35-$.37 per share .
  • On April 17, 2012, FedEx Corporation and TATEX, French express transportation company announced that they are in discussions about a potential plan to acquire TATEX.
  • On April 6, 2012, Landstar System, Inc. announced that for the first quarter of 2012, it expects revenue to increase over revenue generated in the first quarter of 2011 and diluted earnings per share to be within a range of $0.51 to $0.56. The Company reported revenues of $572 million in the first quarter of 2011.
  • On April 5, 2012, FedEx Corporation announced that it signed an agreement to acquire the Polish courier company Opek Sp.z o.o. (Opek), the latest step in its strategy for growth in Europe.
  • On March 29, 2012, Expeditors International of Washington, Inc. announced that it is the recipient of a €4.14 million (approximately $5.5 million) fine issued by the European Commission ("EC") pursuant to proceedings initiated by the EC's February 5, 2010 Statement of Objections, which included allegations of anti-competitive behavior.
  • On March 27, 2012, BM&FBovespa (Bovespa) announced that, on April 4, 2012, the Brazilian Depositary Receipts (BDRs) Level I of FedEx Corporation will start being traded on Bovespa's over-the-counter (OTC) market, quoted in BRL per unit and with standard trading lot of 100 BDRs, under the ticker FDXB11B.
  • On March 22, 2012, FedEx Corporation announced that it projects earnings to be $1.75 to $2.00 per diluted share in the fourth quarter of 2012 and an adjusted $6.35 to $6.60 per diluted share for fiscal 2012.
  • On March 16, 2012, Reuters reported that United Parcel Service was in constructive talks to buy TNT Express NV and reiterated its intention to make an offer, having last month proposed a EUR9 per share deal worth EUR4.9 billion ($6.4 billion).
  • On February 2, 2012, Landstar System, Inc. announced that for the first quarter of 2012, it expects diluted earnings per share to be within a range of $0.51 to $0.56 and within a range of $2.62 to $2.82 for fiscal 2012.

Technical Overview


The stock has a market capitalization of $76.12B and is currently trading at $79.33 with a 52 week range of $60.74 - $81.79. The stock's year-to-date performance has been 10.01%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.