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The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 3.14%.
United Parcel Service, Inc. Price and EPS Surprise
The Zacks Consensus Estimate for second-quarter 2024 earnings is currently pegged at $1.99 per share and has been revised 0.5% downward in the past 60 days. Additionally, the consensus mark implies an 21.7% decline from the year-ago actuals. The Zacks Consensus Estimate for second-quarter 2024 revenues is currently pegged at $22.36 billion, reflecting a 1.4% increase from year-ago actuals.
Given this backdrop, let’s delve deeper to unearth the factors likely to have influenced UPS’ performance in the to-be-reported quarter.
We expect high labor costs to have hurt UPS’ bottom-line performance in the quarter under review. Also, the expenses on compensation and benefits are anticipated to increase 9.7% in the second quarter of 2024 from the prior year. The labor deal inked with the International Brotherhood of Teamsters last year is likely to have resulted in increased labor costs. High fuel costs are expected to affect bottom-line results as well.
Apart from the adverse effects of labor negotiations, weakening demand due to economic slowdown is expected to have resulted in a decline in the volume of packages shipped. Revenues are likely to have suffered due to the weak demand scenario.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for UPS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
UPS has an Earnings ESP of -3.27% (the Most Accurate Estimate is currently pegged at $1.93 per share, 6 cents below the Zacks Consensus Estimate) and a Zacks Rank #4 (Sell) at present.
Highlights of Q1
United Parcel Service's first-quarter 2024 earnings per share of $1.43 beat the Zacks Consensus Estimate of $1.33 but declined 35% year over year. Revenues of $21.7 billion fell short of the Zacks Consensus Estimate of $21.9 billion and decreased 5.3% year over year. U.S. Domestic Package revenues declined 5% year over year to $14.23 billion, caused by a 3.2% decrease in average daily volume.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat second-quarter 2024 earnings.
CPA will release results on Aug 7. Upbeat air-travel demand is likely to have aided the second-quarter performance.
The Zacks Consensus Estimate for CPA’s second-quarter 2024 earnings has been revised downward by 14.9% in the past 60 days to $2.98 per share. CPA has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 20.19%.
Expeditors International of Washington (EXPD - Free Report) currently has an Earnings ESP of +3.15% and a Zacks Rank #3. EXPD is scheduled to report second-quarter 2024 earnings on Aug 6. Lackluster volumes (concerning air-freight tonnage and ocean containers) due to weakening demand and falling rates are anticipated to have hurt EXPD’s performance in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter earnings has been revised 2.52% upward in the last 60 days. EXPD surpassed the Zacks Consensus Estimate for earnings in only one of the preceding four quarters and missed thrice, the average miss being 3.44%.
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UPS Gears Up to Release Q2 Earnings: What's in the Offing?
United Parcel Service (UPS - Free Report) is scheduled to report second-quarter 2024 results on Jul 23, before market open.
The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 3.14%.
United Parcel Service, Inc. Price and EPS Surprise
United Parcel Service, Inc. price-eps-surprise | United Parcel Service, Inc. Quote
The Zacks Consensus Estimate for second-quarter 2024 earnings is currently pegged at $1.99 per share and has been revised 0.5% downward in the past 60 days. Additionally, the consensus mark implies an 21.7% decline from the year-ago actuals. The Zacks Consensus Estimate for second-quarter 2024 revenues is currently pegged at $22.36 billion, reflecting a 1.4% increase from year-ago actuals.
Given this backdrop, let’s delve deeper to unearth the factors likely to have influenced UPS’ performance in the to-be-reported quarter.
We expect high labor costs to have hurt UPS’ bottom-line performance in the quarter under review. Also, the expenses on compensation and benefits are anticipated to increase 9.7% in the second quarter of 2024 from the prior year. The labor deal inked with the International Brotherhood of Teamsters last year is likely to have resulted in increased labor costs. High fuel costs are expected to affect bottom-line results as well.
Apart from the adverse effects of labor negotiations, weakening demand due to economic slowdown is expected to have resulted in a decline in the volume of packages shipped. Revenues are likely to have suffered due to the weak demand scenario.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for UPS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
UPS has an Earnings ESP of -3.27% (the Most Accurate Estimate is currently pegged at $1.93 per share, 6 cents below the Zacks Consensus Estimate) and a Zacks Rank #4 (Sell) at present.
Highlights of Q1
United Parcel Service's first-quarter 2024 earnings per share of $1.43 beat the Zacks Consensus Estimate of $1.33 but declined 35% year over year. Revenues of $21.7 billion fell short of the Zacks Consensus Estimate of $21.9 billion and decreased 5.3% year over year. U.S. Domestic Package revenues declined 5% year over year to $14.23 billion, caused by a 3.2% decrease in average daily volume.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat second-quarter 2024 earnings.
Copa Holdings (CPA - Free Report) has an Earnings ESP of +3.01% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CPA will release results on Aug 7. Upbeat air-travel demand is likely to have aided the second-quarter performance.
The Zacks Consensus Estimate for CPA’s second-quarter 2024 earnings has been revised downward by 14.9% in the past 60 days to $2.98 per share. CPA has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 20.19%.
Expeditors International of Washington (EXPD - Free Report) currently has an Earnings ESP of +3.15% and a Zacks Rank #3. EXPD is scheduled to report second-quarter 2024 earnings on Aug 6. Lackluster volumes (concerning air-freight tonnage and ocean containers) due to weakening demand and falling rates are anticipated to have hurt EXPD’s performance in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter earnings has been revised 2.52% upward in the last 60 days. EXPD surpassed the Zacks Consensus Estimate for earnings in only one of the preceding four quarters and missed thrice, the average miss being 3.44%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar