Charting United Parcel Service's Latest Earnings Release

United Parcel Service (NYSE: UPS  ) reported earnings on Nov. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), United Parcel Service missed slightly on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share dropped significantly.

Margins contracted across the board.

Revenue details
United Parcel Service booked revenue of $13.07 billion. The 18 analysts polled by S&P Capital IQ expected a top line of $13.30 billion on the same basis. GAAP reported sales were 0.7% lower than the prior-year quarter's $13.17 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.06. The 22 earnings estimates compiled by S&P Capital IQ averaged $1.06 per share. GAAP EPS of $0.48 for Q3 were 56% lower than the prior-year quarter's $1.09 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 17.3%, 670 basis points worse than the prior-year quarter. Operating margin was 5.9%, 670 basis points worse than the prior-year quarter. Net margin was 3.6%, 450 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $14.44 billion. On the bottom line, the average EPS estimate is $1.37.

Next year's average estimate for revenue is $54.01 billion. The average EPS estimate is $4.58.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,584 members out of 1,795 rating the stock outperform, and 211 members rating it underperform. Among 454 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 411 give United Parcel Service a green thumbs-up, and 43 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United Parcel Service is outperform, with an average price target of $83.85.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend United Parcel Service. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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5/24/2016 4:01 PM
UPS $101.98 Up +0.89 +0.88%
United Parcel Serv… CAPS Rating: *****