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With a market cap of $82.4 billion, United Parcel Service, Inc. (UPS) operates as a package delivery and logistics provider and offers transportation and delivery services. Founded in 1907, the Atlanta, Georgia-based company operates through the U.S. Domestic Package and International Package segments. The company is set to announce its Q1 results before the market opens on Tuesday, Apr. 29.
Ahead of the event, analysts expect UPS to report a profit of $1.44 per share, marginally up from the year-ago quarter's profit of $1.43 per share. While the company has surpassed analysts' earnings estimates thrice over the past four quarters, it has missed the projections on one other occasion. In the previous quarter, it reported EPS of $2.75, which surpassed the consensus estimate by 9.1%.
For the full fiscal 2025, analysts expect UPS to report an EPS of $7.69, down marginally from $7.72 in fiscal 2024. However, in fiscal 2026, its earnings are expected to rebound 11.7% year-over-year to $8.59 per share.
Over the past year, UPS shares have tanked 34.1%, significantly underperforming the S&P 500 Index’s ($SPX) 4.4% gains and the Industrial Select Sector SPDR Fund’s (XLI) 2.4% uptick over the same time frame.
UPS stock prices plunged 14.1% following its mixed Q4 earnings release on Jan. 30. The company reported a modest 1.5% year-over-year increase in its consolidated revenues, which amounted to $25.3 billion, missing the Street's expectations. Meanwhile, it reported a solid non-GAAP operating margin of 12.3%, pushing its EPS above the consensus estimates.
In fiscal 2025, UPS expects its revenues to come in at approximately $89 billion, down from $91.1 billion reported in fiscal 2024. Moreover, it expects its operating margins to come in at 10.8%, which also missed the Street's expectations and unsettled investor confidence.
The consensus view on UPS stock is cautiously bullish, with a "Moderate Buy" rating overall. Among 28 analysts covering the stock, opinions include 17 "Strong Buys," nine "Holds," and two “Strong Sells.” Its mean price target of $128.73 implies a premium of 36.7% from its prevailing price level.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
