United Parcel Service
The 10-second takeaway
For the quarter ended June 30 (Q2), United Parcel Service missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share increased.
Gross margins increased, operating margins contracted, net margins improved.
United Parcel Service chalked up revenue of $13.35 billion. The 19 analysts polled by S&P Capital IQ predicted revenue of $13.69 billion on the same basis. GAAP reported sales were 1.2% higher than the prior-year quarter's $13.19 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 $1.15. The 23 earnings estimates compiled by S&P Capital IQ forecast $1.17 per share. GAAP EPS of $1.15 for Q2 were 5.5% higher 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.
For the quarter, gross margin was 25.0%, 80 basis points better than the prior-year quarter. Operating margin was 13.1%, 20 basis points worse than the prior-year quarter. Net margin was 8.4%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $13.31 billion. On the bottom line, the average EPS estimate is $1.07.
Next year's average estimate for revenue is $54.54 billion. The average EPS estimate is $4.59.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,558 members out of 1,773 rating the stock outperform, and 215 members rating it underperform. Among 451 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 404 give United Parcel Service a green thumbs-up, and 47 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 $90.06.
Can your retirement portfolio provide you with enough income to last? You'll need more than United Parcel Service. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add United Parcel Service to My Watchlist.
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. 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.