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United Parcel (UPS) Q1 Earnings: Disappointment in Store?
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United Parcel Service (UPS - Free Report) is scheduled to report first-quarter 2017 results on Apr 27, before the market opens.
In the last quarter, the company posted a negative earnings surprise of 2.98%. The company reported earnings of $1.63 per share, missing the Zacks Consensus Estimate by 5 cents. Earnings increased 3.82% year over year. Revenues improved 5.5% over the year-ago quarter to $16.93 billion, lagging the Zacks Consensus Estimate of $16.96 billion. Let’s see what awaits the company in the first quarter.
Price Performance
Shares ofUnited Parcel underperformed the Zacks categorized Transportation - Air Freight and Cargo in the last six months. The stock lost 1.95% while the industry fell 1.21%.
Factors Likely to Influence this Quarter
United Parcel struggled in the most recent holiday season, thanks to higher package delivery costs. The escalated costs are likely to hurt first-quarter 2017 results. Foreign currency-related headwinds are also expected to hurt the first quarter results. Unfavorable product mix and weakness in industrial production may dampen the company’s first quarter performance.
However, the company’s decision to hike dividend by 6.4% in the first quarter is encouraging. United Parcel’s efforts to expand and grow its top line also raise optimism. In a bid to speed up operations in the U.K. and European truckload brokerage operations, the company acquired Freightex Ltd in Jan 2017. The expanded product portfolio might aid first quarter results.
Earnings Whispers
Our proven model does not conclusively show that United Parcel will beat the Zacks Consensus Estimate this quarter as well. 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 -0.77% as the Most Accurate estimate is pegged at $1.29 while the Zacks Consensus Estimate is at $1.30. 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 #4 (Sell). Please note that Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
United Parcel Service, Inc. Price and EPS Surprise
Investors interested in the transportation space may consider the following stocks. This is because our model shows that these companies possess the right combination of elements to post an earnings beat this quarter.
C.H. Robinson Worldwide (CHRW - Free Report) has an Earnings ESP of +2.50% and a Zacks Rank #3. The company will report first-quarter results on Apr 25.
Air Lease Corporation (AL - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank #3. The company will report first-quarter results on May 4.
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United Parcel (UPS) Q1 Earnings: Disappointment in Store?
United Parcel Service (UPS - Free Report) is scheduled to report first-quarter 2017 results on Apr 27, before the market opens.
In the last quarter, the company posted a negative earnings surprise of 2.98%. The company reported earnings of $1.63 per share, missing the Zacks Consensus Estimate by 5 cents. Earnings increased 3.82% year over year. Revenues improved 5.5% over the year-ago quarter to $16.93 billion, lagging the Zacks Consensus Estimate of $16.96 billion. Let’s see what awaits the company in the first quarter.
Price Performance
Shares of United Parcel underperformed the Zacks categorized Transportation - Air Freight and Cargo in the last six months. The stock lost 1.95% while the industry fell 1.21%.
Factors Likely to Influence this Quarter
United Parcel struggled in the most recent holiday season, thanks to higher package delivery costs. The escalated costs are likely to hurt first-quarter 2017 results. Foreign currency-related headwinds are also expected to hurt the first quarter results. Unfavorable product mix and weakness in industrial production may dampen the company’s first quarter performance.
However, the company’s decision to hike dividend by 6.4% in the first quarter is encouraging. United Parcel’s efforts to expand and grow its top line also raise optimism. In a bid to speed up operations in the U.K. and European truckload brokerage operations, the company acquired Freightex Ltd in Jan 2017. The expanded product portfolio might aid first quarter results.
Earnings Whispers
Our proven model does not conclusively show that United Parcel will beat the Zacks Consensus Estimate this quarter as well. 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 -0.77% as the Most Accurate estimate is pegged at $1.29 while the Zacks Consensus Estimate is at $1.30. 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 #4 (Sell). Please note that Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
United Parcel Service, Inc. Price and EPS Surprise
United Parcel Service, Inc. Price and EPS Surprise | United Parcel Service, Inc. Quote
Stocks to Consider
Investors interested in the transportation space may consider the following stocks. This is because our model shows that these companies possess the right combination of elements to post an earnings beat this quarter.
American Airlines Group (AAL - Free Report) has an Earnings ESP of +3.64% and a Zacks Rank #3. The company will report first-quarter results on Apr 27. You can see the complete list of today’s Zacks #1 Rank stocks here.
C.H. Robinson Worldwide (CHRW - Free Report) has an Earnings ESP of +2.50% and a Zacks Rank #3. The company will report first-quarter results on Apr 25.
Air Lease Corporation (AL - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank #3. The company will report first-quarter results on May 4.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging
phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>