United Parcel Service Q4 Earnings Preview

Posted January 26, 2012

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United Parcel Service provides package transportation, logistics and financial services. Its services include time-definite delivery of letters, documents and packages in approximately 220 countries and territories as well as export services. Tuesday, January 31, 2012, the company will report its fourth quarter earnings.

Expectations: Analysts are expecting the company to report earnings of $1.26 per share, up 16.7% from a year ago, when it reported earnings of $1.08 per share. The consensus estimate has risen from $1.25 over the past three months. For the fiscal year, analysts are projecting earnings of $4.25 per share. The company is projected to top last year's reported revenue of $13.42 billion by 7.7% to come in $14.45 billion for the quarter. The company is expected to report revenue of $53.39 billion for the fiscal year.

Performance: The company's profit has been on the rise for three quarters in a row. In the most recent quarter, profit increased 5.1% year-over-year. Going back two quarters, net income rose 25.8% in the second quarter and 66% in the first quarter. The company has reported growing revenue for four quarters in a row. Revenue rose 8% to $13.17 billion in the third quarter. Looking back further, revenue increased 8.1% year-over-year in the second quarter, 7.3% in the first quarter, and 8.4% in the fourth quarter of the last fiscal year. Over the past quarter, the stock price has risen to $75.62 from $70.97 on October 28, 2011. United Parcel Service's worst recent stretch was when its stock price fell $4.32 per share between November 11, 2011 and November 25, 2011.

Ratings: The majority of analysts (69.6%) give the stock a buy rating. However, that is lower than the average analyst ratings for the comapny's eight closest competitors, which average 85.7% buys. This marks an improvement, as the number of buy ratings has risen slightly over the past three months.

Earnings estimates provided by Zacks.

United Parcel Service, Inc.

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