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United Parcel Service (UPS) Beats on Q2 Earnings

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United Parcel Service (UPS - Free Report) reported second-quarter 2018 earnings per share (excluding 23 cents from non-recurring items) of $1.94 per share, surpassing the Zacks Consensus Estimate of $1.92. Earnings increased 22.8% on a year-over-year basis.

How Was the Estimate Revision Trend?

Investors should note that the earnings estimate revisions for UPS depicted an encouraging picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for second-quarter earnings being revised upward to the tune of 0.5% over the last thirty days

Prior to the earnings beat in the second-quarter, the company delivered positive surprises in each of the last four quarters. The average earnings beat was 2.7%.

Revenues Better Than Expected

UPS recorded operating revenues of $17,456 million, which surpassed the Zacks Consensus Estimate of $17,303.7 million. Moreover, revenues increased on a year over year basis.

Key Stats to Note: The package delivery company expects 2018 adjusted earnings per share between $7.03 and $7.37. Free cash flow is expected at $5 billion. The Zacks Consensus Estimate for 2018 currently stands at $7.24 per share. Capital expenditure between $6.5 billion and $7 billion in 2018. Effective tax rate is expected between 23% and 24% for the remainder of the year.

Stock Price Movement: The strong earnings report pleased investors. Consequently, shares of the company were up in pre-market trading at the time of writing.

Zacks Rank: Currently, UPS carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank stocks here.

Check back later for our full write up on this UPS earnings report later!

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