We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
United Parcel Service (UPS) Q4 Earnings: What's in Store?
Read MoreHide Full Article
United Parcel Service (UPS - Free Report) is scheduled to report fourth-quarter 2016 results on Jan 31, before the market opens.
In the third quarter, the company reported a positive earnings surprise of 0.7%. Earnings increased 3.6% year over year. Revenues improved 4.9% to $14.9 billion year over year and also beat the Zacks Consensus Estimate of $14.7 billion. Let’s see what awaits the company in the fourth quarter.
Factors Likely to Influence this Quarter
We expect adverse foreign currency movements to impact results in the fourth quarter as well. Also, the lower fuel charges are expected to limit earnings growth.
We believe that the main focus in the fourth quarter will be on updates regarding the company’s performance during the holiday season. United Parcel, like its rival FedEx Corporation (FDX - Free Report) , had left no stone unturned to ensure a successful holiday season. In a bid to increase capacity, efficiency and flexibility, United Parcel installed temporary processing facilities and operational technology. The Atlanta-based company had also hired around 95,000 seasonal workers to meet the surge in demand during the period.
Apart from its efforts to perform well during the holiday season, we are also impressed by the company’s efforts to expand. In keeping with its expansion efforts, United Parcel completed the acquisition of Marken, a provider of supply chain solutions to the life sciences industry, in the fourth quarter. During the quarter, United Parcel entered into a strategic alliance with Optoro, which helps to better manage returns and inventory for manufacturers and retailers by using advanced technology tools. We are also impressed by the company’s efforts to reward shareholders consistently through buybacks and dividends.
United Parcel Service, Inc. Price and EPS Surprise
Our proven model does not conclusively show that United Parcel is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP:The Earnings ESP for United Parcel is 0.00%, as the Most Accurate estimate is in line with the Zacks Consensus Estimate of $1.68 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank:United Parcel carries a Zacks Rank #3. However, that alone is not sufficient to secure an earnings beat.
Please note that we caution against Sell-rated (Zacks Rank #4 or 5) stocks going into an earnings announcement, especially if the company has been seeing negative estimate revisions.
Stocks to Consider
Investors who are interested in the transportation space may consider the following stocks. This is because our model shows that these companies too possess the right combination of elements to post an earnings beat this quarter.
Spirit Airlines (SAVE - Free Report) has a Zacks Rank #2 and an Earnings ESP of +1.37%. It is scheduled to report fourth-quarter results on Feb 7. The company beat the Zacks Consensus Estimate in each of the last four quarters with an average positive surprise of 4.71%. You can see the complete list of today’s Zacks #1 Rank stocks here.
C.H. Robinson Worldwide (CHRW - Free Report) has a Zacks Rank #3 and an Earnings ESP of +2.38%. It is scheduled to report fourth-quarter results on Jan 31. The company beat the Zacks Consensus Estimate in two of the last four quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
United Parcel Service (UPS) Q4 Earnings: What's in Store?
United Parcel Service (UPS - Free Report) is scheduled to report fourth-quarter 2016 results on Jan 31, before the market opens.
In the third quarter, the company reported a positive earnings surprise of 0.7%. Earnings increased 3.6% year over year. Revenues improved 4.9% to $14.9 billion year over year and also beat the Zacks Consensus Estimate of $14.7 billion. Let’s see what awaits the company in the fourth quarter.
Factors Likely to Influence this Quarter
We expect adverse foreign currency movements to impact results in the fourth quarter as well. Also, the lower fuel charges are expected to limit earnings growth.
We believe that the main focus in the fourth quarter will be on updates regarding the company’s performance during the holiday season. United Parcel, like its rival FedEx Corporation (FDX - Free Report) , had left no stone unturned to ensure a successful holiday season. In a bid to increase capacity, efficiency and flexibility, United Parcel installed temporary processing facilities and operational technology. The Atlanta-based company had also hired around 95,000 seasonal workers to meet the surge in demand during the period.
Apart from its efforts to perform well during the holiday season, we are also impressed by the company’s efforts to expand. In keeping with its expansion efforts, United Parcel completed the acquisition of Marken, a provider of supply chain solutions to the life sciences industry, in the fourth quarter. During the quarter, United Parcel entered into a strategic alliance with Optoro, which helps to better manage returns and inventory for manufacturers and retailers by using advanced technology tools. We are also impressed by the company’s efforts to reward shareholders consistently through buybacks and dividends.
United Parcel Service, Inc. Price and EPS Surprise
United Parcel Service, Inc. Price and EPS Surprise | United Parcel Service, Inc. Quote
Earnings Whispers
Our proven model does not conclusively show that United Parcel is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP:The Earnings ESP for United Parcel is 0.00%, as the Most Accurate estimate is in line with the Zacks Consensus Estimate of $1.68 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank:United Parcel carries a Zacks Rank #3. However, that alone is not sufficient to secure an earnings beat.
Please note that we caution against Sell-rated (Zacks Rank #4 or 5) stocks going into an earnings announcement, especially if the company has been seeing negative estimate revisions.
Stocks to Consider
Investors who are interested in the transportation space may consider the following stocks. This is because our model shows that these companies too possess the right combination of elements to post an earnings beat this quarter.
Spirit Airlines (SAVE - Free Report) has a Zacks Rank #2 and an Earnings ESP of +1.37%. It is scheduled to report fourth-quarter results on Feb 7. The company beat the Zacks Consensus Estimate in each of the last four quarters with an average positive surprise of 4.71%. You can see the complete list of today’s Zacks #1 Rank stocks here.
C.H. Robinson Worldwide (CHRW - Free Report) has a Zacks Rank #3 and an Earnings ESP of +2.38%. It is scheduled to report fourth-quarter results on Jan 31. The company beat the Zacks Consensus Estimate in two of the last four quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>