United Parcel Service
The 10-second takeaway
For the quarter ended March 31 (Q1), United Parcel Service met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew.
Margins improved across the board.
United Parcel Service reported revenue of $13.14 billion. The 17 analysts polled by S&P Capital IQ looked for revenue of $13.26 billion on the same basis. GAAP reported sales were 4.4% higher than the prior-year quarter's $12.58 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.00. The 21 earnings estimates compiled by S&P Capital IQ averaged $1.02 per share. GAAP EPS of $1.00 for Q1 were 14% higher than the prior-year quarter's $0.88 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 23.0%, 40 basis points better than the prior-year quarter. Operating margin was 11.9%, 50 basis points better than the prior-year quarter. Net margin was 7.4%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $13.73 billion. On the bottom line, the average EPS estimate is $1.18.
Next year's average estimate for revenue is $55.84 billion. The average EPS estimate is $4.84.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,544 members out of 1,754 rating the stock outperform, and 210 members rating it underperform. Among 454 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 412 give United Parcel Service a green thumbs-up, and 42 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 $89.22.
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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. 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.