What Analysts Think of UPS Stock Ahead of Earnings
Key Takeaways
United Parcel Service (
UPS
) is set to report fourth-quarter earnings on Thursday morning, with analysts expecting the company to record a second straight quarter of year-over-year revenue and profit growth.
Analysts are mostly bullish on the shipping giant’s stock; among the 15 covering UPS who are tracked by Visible Alpha, 12 have
“buy” ratings
, along with two “hold” and one “sell.” Their consensus price target of $153.73 is more than 15% above the stock’s closing level Friday.
Analysts Expect Second Straight Quarter of Revenue, Profit Growth
UPS is expected to report net income of $2.14 billion, or $2.51
per share
, on revenue of $25.35 billion, according to Visible Alpha. A year ago, it posted profit of $1.61 billion, or $1.87 per share, on revenue of $24.92 billion.
Meeting those estimates would mark a
second straight quarter
of year-over-year revenue and profit growth for UPS, which—like
shipping rival FedEx
(
FDX
)—saw
several quarters of declines
following record demand during the pandemic.
CEO Carol TomĂ© called the third quarter the end of a “challenging 18-month period” for UPS in its third-quarter report, when the company lowered its 2024 revenue
outlook
to $91.1 billion, down from about $93 billion previously.
UPS shares, which were up 2.5% intraday Monday, are down about 15% over the last 12 months.
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