Core Viewpoint - Analysts project that United Parcel Service (UPS) will report quarterly earnings of $1.42 per share, reflecting a year-over-year decline of 0.7%, with revenues expected to reach $21.06 billion, down 3% from the same quarter last year [1]. Earnings Projections - The consensus EPS estimate for the quarter has been adjusted downward by 1.1% over the past 30 days, indicating a reassessment by covering analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly linked to short-term stock price performance [3]. Revenue Estimates - Analysts estimate 'Revenue- Supply Chain Solutions' at $2.73 billion, a decrease of 15% from the prior-year quarter [5]. - 'Revenue- International Package' is projected to be $4.27 billion, showing a slight increase of 0.2% year over year [5]. - 'Revenue- U.S. Domestic Package' is expected to be $14.22 billion, indicating a minor decline of 0.1% from the year-ago quarter [5]. Key Metrics - 'Revenue- International Package- Cargo and other' is estimated at $143.99 million, down 2.7% from the prior-year quarter [6]. - The 'Average revenue per piece - International Package - Total' is projected to be $20.39, down from $20.87 in the same quarter last year [6]. - 'Average daily package volume - International Package - Export' is expected to reach 1.71 million, up from 1.62 million year-over-year [7]. - 'Average daily package volume - International Package - Domestic' is estimated at 1.57 million, compared to 1.5 million last year [7]. - 'Average revenue per piece - U.S. Domestic Package - Ground' is likely to be $11.54, up from $11.07 in the same quarter last year [8]. - 'Average revenue per piece - U.S. Domestic Package - Total' is projected at $13.13, compared to $12.50 last year [8]. - 'Average revenue per piece - International Package - Domestic' is expected to be $8.05, slightly up from $8.01 year-over-year [9]. - 'Average revenue per piece - International Package - Export' is projected at $31.70, down from $32.80 last year [9]. - 'Average daily package volume - International Package - Total' is forecasted to reach 3.29 million, compared to 3.12 million in the same quarter last year [10]. Stock Performance - UPS shares have decreased by 12.4% in the past month, while the Zacks S&P 500 composite has declined by 5.1% [12]. - UPS holds a Zacks Rank 4 (Sell), indicating expected underperformance relative to the overall market in the near term [12].

Core Insights - United Parcel Service (UPS) has announced an agreement to acquire Andlauer Healthcare Group Inc., a Canadian supply chain management company, with the deal expected to close in the second half of 2025 [1] - The acquisition is valued at approximately 2.2 billion Canadian dollars (equivalent to 1.6 billion US dollars), with Andlauer Healthcare's shareholders set to receive 55 Canadian dollars per share [1] - This acquisition will significantly enhance UPS Healthcare's end-to-end cold chain service capabilities, particularly in precision temperature-controlled logistics [1] Company and Industry Summary - Andlauer Healthcare is recognized for providing customized third-party logistics solutions and specialized cold chain transportation services in the healthcare sector [1] - The acquisition aligns with the growing complexity of new treatment modalities, which has increased demand for integrated end-to-end cold chain solutions in healthcare [2] - UPS Healthcare aims to leverage Andlauer Healthcare's temperature-controlled facilities and expertise to improve service capabilities and contribute to overall business growth [2]

Core Viewpoint - UPS has experienced significant stock decline and operational challenges, while Enterprise Products Partners presents a more stable investment opportunity with strong growth potential and high dividend yield [1][2][7]. UPS Overview - UPS operates in over 200 countries, delivering an average of 22.4 million packages daily and employing nearly half a million people [1]. - The company has been a member of the S&P 500 for 23 years and has raised its dividend annually for 16 consecutive years [1]. Recent Performance of UPS - Over the past two years, UPS's stock has plummeted by more than 50% due to decelerating deliveries, shrinking operating margins, and declining EPS [2]. - In 2023, UPS's revenue declined by 9%, adjusted operating margin shrank by 290 basis points to 10.9%, and EPS plunged by 41% [4]. - For 2024, revenue growth flatlined, adjusted operating margin dropped another 90 basis points to 9.8%, and EPS fell by 13% [4]. Future Projections for UPS - From 2024 to 2027, analysts expect UPS's revenue to grow at a compound annual growth rate (CAGR) of less than 1%, while EPS is projected to grow at a CAGR of 11% [5]. - If UPS matches analysts' estimates and trades at 13 times forward earnings by the beginning of 2027, its stock price could rise about 23% to $119, driving its market cap to just over $100 billion [6]. Enterprise Products Partners Overview - Enterprise Products Partners builds pipelines for transporting natural gas, natural gas liquids, and crude oil, operating over 50,000 miles of pipeline across the U.S. with a combined storage capacity of over 300 million barrels of oil [8]. - As a midstream company, Enterprise generates revenue by charging upstream extraction and downstream refining companies "tolls" to use its pipelines, making it less affected by fluctuating fuel prices [9]. Growth Potential of Enterprise Products Partners - Enterprise is well-insulated from inflation and macro headwinds, benefiting from the Trump Administration's promotion of domestic fossil fuels [10]. - The company is a master limited partnership (MLP), reporting profits in earnings per unit (EPU) and returning most of its EPU to investors as distributions [11]. - From 2014 to 2024, Enterprise's EPU grew at a steady CAGR of 6%, with a current forward distribution of $2.14 per share, equating to a forward yield of 6.9% [12]. Future Projections for Enterprise Products Partners - Analysts expect Enterprise's EPU to continue growing at a CAGR of 6% from 2024 to 2027, driven by pipeline expansions in oil-rich locations [12]. - At $31, Enterprise trades at just 11 times this year's EPU estimate, and if it trades at 15 times forward earnings by Q1 2027, its stock price could rise 53% to nearly $48, boosting its market cap to $102.5 billion [13].

Group 1 - The core point of the article is that United Parcel Service (UPS) is acquiring Andlauer Healthcare Group for CAD 55 per share in cash, which aims to enhance its global services in the complex healthcare logistics sector [1] Group 2 - The acquisition reflects UPS's strategic move to strengthen its position in the healthcare logistics market, which is increasingly important due to the growing demand for specialized medical transportation services [1] - This transaction is expected to provide UPS with enhanced capabilities and expertise in managing complex healthcare supply chains, thereby improving service offerings to clients in the medical field [1]

Core Viewpoint - United Parcel Service (UPS) is anticipated to report a year-over-year increase in earnings despite a decline in revenues for the quarter ending March 2025, with the consensus outlook indicating a potential impact on the stock price based on actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on April 29, 2025, with a consensus estimate of $1.44 per share, reflecting a year-over-year increase of +0.7%. Revenues are projected to be $21.06 billion, down 3% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 1.11% lower in the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4]. The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -5.62%, suggesting a bearish outlook [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a positive reading being a strong predictor of an earnings beat, especially when combined with a strong Zacks Rank [6][8]. However, UPS currently holds a Zacks Rank of 4, complicating predictions of an earnings beat [11]. Historical Performance - UPS has beaten consensus EPS estimates three times over the last four quarters, with the most recent quarter showing a surprise of +9.13% [12][13]. Conclusion - While UPS does not appear to be a compelling candidate for an earnings beat based on current estimates and rankings, investors should consider other factors influencing stock performance ahead of the earnings release [16].

Company Overview - United Parcel Service, Inc. (UPS) is recognized for its brown trucks and operates as an air freight and logistics company [1] Investment Interest - There is a growing interest among individual investors, particularly those nearing retirement, in building financial assets through both long and short trading strategies, including the use of inverse ETFs to capitalize on market declines [1] Analyst Position - The analyst has no current stock, option, or similar derivative position in UPS but may initiate a long position within the next 72 hours [2]

Core Insights - The analysis focuses on high-quality companies that can outperform the market over the long term due to competitive advantages and high levels of defensibility [1] Group 1 - The last article on United Parcel Service, Inc. (NYSE: UPS) was published in July 2024 when the stock was trading at $130 [1] - The analysis is concentrated on European and North American companies, without constraints on market capitalization, covering both large cap and small cap companies [1] - The author has an academic background in sociology, holding a Master's Degree in Sociology with an emphasis on organizational and economic sociology, and a Bachelor's Degree in Sociology and History [1]

Core Viewpoint - United Parcel Service (UPS) has experienced significant stock declines, raising questions about potential buying opportunities amidst ongoing challenges in demand and economic uncertainty [1][4]. Group 1: Stock Performance - UPS shares have declined 23.5% year-to-date, which is in line with the Zacks Transportation—Air Freight and Cargo industry's 21.1% fall and a 22.2% dip in shares of GXO Logistics [1]. - Over the past year, UPS shares have fallen 33.7%, worse than the industry's 27% decline, with GXO Logistics and FedEx down 32% and 23.2%, respectively [4]. Group 2: Factors Hurting UPS Stock - Demand Slowdown: UPS anticipates average daily volumes to decrease by 8.5% in 2025 compared to 2024, driven by a decline in shipping demand and a slowdown in online sales in the U.S. [5]. - Revenue Projections: For full-year 2025, UPS expects revenues of $89 billion, significantly below the Zacks Consensus Estimate of $94.6 billion and lower than 2024's actuals of $91.1 billion [6]. - Economic Uncertainty: Rising inflation and tariff concerns have created market volatility, with fears of economic slowdown impacting UPS's outlook [7][8]. Group 3: Dividend Sustainability - UPS announced a 0.6% increase in its quarterly dividend to $1.64 per share, raising concerns about the sustainability of this payout given an elevated dividend payout ratio of 84% [9]. - Free cash flow has been declining, with projections of $5.7 billion in 2025, barely covering expected dividend payments of approximately $5.5 billion [11]. Group 4: Valuation and Earnings Estimates - UPS stock is trading at a forward sales multiple of 0.93, which is considered expensive compared to industry peers [12]. - Recent earnings estimates for UPS have been revised downward, indicating a negative trend in earnings expectations for 2025 [16]. Group 5: Expansion Efforts - UPS is pursuing expansion by acquiring Estafeta, a Mexican express delivery company, and enhancing export services from Kyushu, which are seen as positive steps for long-term growth [18].

Group 1 - The primary goal of the "High Income DIY Portfolios" Marketplace service is to provide high income with low risk and capital preservation for DIY investors [1] - The service offers seven portfolios designed for income investors, including retirees or near-retirees, featuring 3 buy-and-hold portfolios, 3 rotational portfolios, and a 3-bucket NPP model portfolio [1] - The portfolios include two high-income portfolios, two dividend growth investment (DGI) portfolios, and a conservative NPP strategy portfolio aimed at low drawdowns and high growth [1]

Core Insights - United Parcel Service, Inc. (UPS) has experienced significant stock losses exceeding 35% over the past year, indicating a period of technical weakness for the stock [1] - Despite the technical challenges, the current valuation of UPS is considered too attractive to overlook, suggesting potential investment opportunities [1] Company Analysis - The stock's performance has been notably poor, with a decline of over 35% in the last year, which may continue in the short term [1] - The analysis indicates that the valuation metrics for UPS have reached a level that may present a buying opportunity for investors [1]