United Parcel Service Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component United Parcel Service (NYSE:UPS) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. United Parcel Service offers services in the package and freight delivery industry.

United Parcel Service Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.38 per share, a rise of 7.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $1.37. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.38 during the last month. Analysts are projecting profit to rise by 5.3% versus last year to $4.58.

Past Earnings Performance: The company met estimates last quarter after falling short of forecasts in the prior two. Before reporting net income of $1.06 per share in the third quarter to fall in line with expectations, the company beat estimates by 3 cents in the second quarter.

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A Look Back: In the third quarter, profit fell 55% to $469 million (48 cents a share) from $1.04 billion ($1.06 a share) the year earlier, meeting analyst expectations. Revenue fell 0.7% to $13.07 billion from $13.17 billion.

Here’s how United Parcel Service traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

ups

Analyst Ratings: There are 11 out of 20 analysts surveyed (55%) rating United Parcel Service a buy. Over the last three months, the stock’s average rating has increased from hold to moderate buy.

Wall St. Revenue Expectations: Analysts predict a rise of 1.9% in revenue from the year-earlier quarter to $14.44 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 5.6% in the fourth quarter of the last fiscal year, 4.4% in the first quarter and 1.2%in the second quarter before dropping in the third quarter.

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 9.6% in the first quarter and 5% in the second quarter before dropping in the third quarter.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)