Is a Beat in the Cards for United Parcel’s (UPS) Q3 Earnings?


tags:

United Parcel Service, Inc. (UPS Quick QuoteUPS ) is scheduled to report third-quarter 2022 results on Oct 25, before market open.

The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 8.51%. Our estimate of $2.83 earnings per share for the to-be-reported quarter indicates growth of 4.6% from the year-ago reported figure.

United Parcel Service, Inc. Price and EPS Surprise United Parcel Service, Inc. Price and EPS Surprise

United Parcel Service, Inc. price-eps-surprise | United Parcel Service, Inc. Quote

Let’s see how things are shaping up for United Parcel this earnings season.

Q3 Expectations

The Zacks Consensus Estimate for UPS’s third-quarter 2022 revenues and our estimate for the same are both pegged at $24.35 billion, indicating 5.1% growth year over year.


The Zacks Consensus Estimate for third-quarter U.S. Domestic Package revenues is pegged at $15,274 million, indicating 7.5% growth from the year-ago reported figure. Our estimate of $15,229.6 million of revenues indicates growth of 7.2% from the year-ago reported figure. An increase in revenue per piece due to robust improvement in all products is likely to have boosted segmental revenues.

The Zacks Consensus Estimate for third-quarter International Package revenues is pegged at $4,897 million, indicating 3.8% growth from the year-ago reported figure. An increase in revenue per piece is expected to have aided segmental revenues.


The Zacks Consensus Estimate for third-quarter Supply Chain and Freight revenues is pegged at $4,223 million, indicating a 0.7% decline from the year-ago reported figure.

On the flip side,high fuel costs are likely to have dented UPS’ bottom-line performance in the to-be-reported quarter. Moreover, supply-chain challenges are likely to have hurt operations. Notably, the Zacks Consensus Estimate for UPS’ third-quarter 2022 earnings has been revised downward by 5% in the past 90 days to $2.84.

What Our Model Says

Our proven model predicts an earnings beat for United Parcel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.


United Parcel has an Earnings ESP of +0.60% and a Zacks Rank #3.

Highlights of Q2

United Parcel Service’s earnings (excluding 4 cents from non-recurring items) of $3.29 per share beat the Zacks Consensus Estimate of $3.14. The bottom line increased 7.5% year over year, with strong performances across all segments. Quarterly revenues of $24,766 million also outperformed the Zacks Consensus Estimate of $24.730.3 million. The top line increased 5.7% year over year, driven by higher fuel surcharges and shipping rates.

Other Stocks to Consider


Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on third-quarter 2022 earnings:

Copa Holdings (CPA Quick QuoteCPA ) has an Earnings ESP of +7.28% and a Zacks Rank #2. CPA will release results on Nov 16. You can see the complete list of today’s Zacks #1 Rank stocks here.

CPA has an expected earnings growth rate of more than 100% for the current year. CPA delivered a trailing four-quarter earnings surprise of 174.22%, on average.

JetBlue Airways (JBLU Quick QuoteJBLU ) has an Earnings ESP of +1.67% and a Zacks Rank #3. JBLU will release results on Oct 25.

JBLU has an expected earnings growth rate of 67.73% for the current year.

Shares of JBLU have lost 55.5% over the past year.

United Airlines (UAL Quick QuoteUAL ) has an Earnings ESP of +5.29% and a Zacks Rank #3. UAL will release results on Oct 18.

UAL has an expected earnings growth rate of 103.3% for the current year. UAL delivered a trailing four-quarter earnings surprise of 10.53%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Leave a Reply

Your email address will not be published.