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United Parcel Service (UPS) Misses on Q1 Earnings

Zacks Equity Research

United Parcel Service, Inc. UPS reported first-quarter 2019 adjusted earnings per share of $1.39, missing the Zacks Consensus Estimate of $1.42. Earnings decreased on a year-over-year basis.

How Was the Estimate Revision Trend?

Investors should note that the earnings estimate revisions for UPS depicted a gloomy picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for first-quarter earnings being revised 4.7% downward over the last 60 days.

However, UPS has an impressive earnings surprise history. The company delivered positive surprises in three of the past four quarters. The average earnings beat was 0.8%.

United Parcel Service, Inc. Price and EPS Surprise

 

United Parcel Service, Inc. Price and EPS Surprise | United Parcel Service, Inc. Quote

Revenues Lower Than Expected

UPS recorded revenues of $17,160 million, which fell short of the Zacks Consensus Estimate of $17,793.7 million. However, it compared favorably with the year-ago number of $17,113 million.

Key Stats to Note: The package delivery company expects 2019 adjusted earnings per share in the band of $7.45 to $7.75. The Zacks Consensus Estimate for 2019 currently stands at $7.52 per share. Meanwhile, effective tax rate is expected in the range of 23-24% in 2019. Additionally, free cash flow is anticipated to be between $3.5 billion and $4 billion.

Zacks Rank: Currently, UPS carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on this United Parcel Service earnings report later!

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