United Parcel Service (UPS) got here out with quarterly earnings of $2.28 per share, beating the Za
United Parcel Service (UPS) got here out with quarterly earnings of $2.28 per share, beating the Zacks Consensus Estimate of $1.86 per share. This compares to earnings of $2.07 per share a yr in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 22.58%. 1 / 4 in the past, it was anticipated that this bundle supply service would put up earnings of $1.04 per share when it really produced earnings of $2.13, delivering a shock of 104.81%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates 3 times.
UPS, which belongs to the Zacks Transportation – Air Freight and Cargo business, posted revenues of $21.24 billion for the quarter ended September 2020, surpassing the Zacks Consensus Estimate by 5.77%. This compares to year-ago revenues of $18.32 billion. The corporate has topped consensus income estimates 3 times during the last 4 quarters.
The sustainability of the inventory’s fast worth motion based mostly on the recently-released numbers and future earnings expectations will largely depend upon administration’s commentary on the earnings name.
UPS shares have added about 45.9% because the starting of the yr versus the S&P 500’s acquire of 5%.
What’s Subsequent for UPS?
Whereas UPS has outperformed the market to date this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There aren’t any straightforward solutions to this key query, however one dependable measure that may assist traders deal with that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified these days.
Empirical analysis reveals a powerful correlation between near-term inventory actions and traits in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a powerful monitor file of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for UPS was favorable. Whereas the magnitude and course of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #1 (Robust Purchase) for the inventory. So, the shares are anticipated to outperform the market within the close to future. You possibly can see the entire record of in the present day’s Zacks #1 Rank (Robust Purchase) shares right here.
It is going to be attention-grabbing to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $1.88 on $22.11 billion in revenues for the approaching quarter and $7.04 on $80.77 billion in revenues for the present fiscal yr.
Buyers must be aware of the truth that the outlook for the business can have a cloth impression on the efficiency of the inventory as nicely. When it comes to the Zacks Trade Rank, Transportation – Air Freight and Cargo is at the moment within the high 1% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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United Parcel Service, Inc. (UPS): Free Inventory Evaluation Report
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