Earnings Preview: United Parcel Service

| About: United Parcel (UPS)

United Parcel Service (NYSE:UPS) is expected to report Q2 earnings before the market opens on Tuesday, July 24 with a conference call scheduled for 8:30 am ET.


Analysts are looking for EPS of $1.17 and revenue of $13.69B. The consensus range is $1.11-$1.19 for EPS, and $13.21B-$14B for revenue, according to First Call. UPS reported disappointing Q1 results, missing both EPS and missing revenue estimates. On its Q1 report, the company reaffirmed FY12 EPS $4.75-$5.00, consensus $4.89. Management expected Q2 EPS to grow at the same rate as Q1. Q3 EPS was anticipated to grow slower than Q2, however Q4 EPS was seen as growing at the fastest pace of the year. For FY12, the company expected high single-digit operating profit growth for the domestic segment. The international segment was seen growing in the mid-teens on high single-digit revenue improvement for the second half of FY12. The shares have traded modestly higher since Q1 results were released in late April, nearing the 52-week high of $81.79 made in March. Since making a 52-week low of $60.74 in early October of last year, the shares have advanced approximately 27%. As such, investors will need an upside surprise in earnings and guidance to push the shares through their recent trading range.