United Parcel Service
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.
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 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.
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.
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.
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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