UPS ( NYSE: UPS ) is scheduled to announce Q3 earnings results on Tuesday, October 25th, before market open.
The Atlanta- based company beat top and bottom lines for the second quarter and reaffirmed full-year guidance.
"While the external environment is ever changing, our better not bigger strategic framework has fundamentally improved nearly every aspect of our business, enabling greater agility and strong financial performance," CEO Carol Tomé said.
Morgan Stanley warned of "post-pandemic mean reversion" trends impacting coming quarters for UPS and and FedEx. It expects FDX earnings to remain relatively flat ahead as competing forces of further unwind, cost inflation and competitive risk battle cost actions and easier comparables next year.
Analyst Ravi Shanker said: "Given the similarities of the businesses in terms of customers, operations and regions, we believe it is very unlikely for UPS to be able to outrun these pressures. In addition, UPS likely has elevated idiosyncratic risk from AMZN insourcing and union contract renegotiations in 2023 as well as higher investor expectations."
SA contributor Daniel Jones noted that UPS profits and cash flows tend to be volatile from year to year, and the company faces near-term risks including pricing pressure amid the current economic downturn. However, UPS continues to expand its top line as it handles more and more packages.
Over the last 3 months, EPS estimates have seen 1 upward revision and 20 downward. Revenue estimates have seen 3 upward revisions and 11 downward. The consensus EPS Estimate is $2.85 (+5.2% Y/Y) and the consensus Revenue Estimate is $24.34B (+4.9% Y/Y).
Over the last 2 years, UPS has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.
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What lies in store for UPS Q3 earnings?