Earnings Preview: United Parcel Service (UPS) Q2 Earnings Expected to Decline

Core Viewpoint - The market anticipates a year-over-year decline in earnings for United Parcel Service (UPS) due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - UPS is expected to report quarterly earnings of $1.56 per share, reflecting a year-over-year decrease of 12.9% [3]. - Revenue projections stand at $20.85 billion, which is a decline of 4.4% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.47% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for UPS is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.00% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from consensus estimates, with positive readings being more predictive of earnings beats [9][10]. - UPS currently holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, UPS exceeded expectations with earnings of $1.49 per share against an estimate of $1.44, resulting in a surprise of +3.47% [13]. - Over the past four quarters, UPS has beaten consensus EPS estimates three times [14]. Conclusion - UPS does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but other factors should also be considered when evaluating the stock ahead of the earnings release [17].