United Parcel Service (NYSE: UPS) is a global leader in logistics and package delivery services. As it prepares to release its fourth-quarter earnings on January 30, 2025, analysts are closely watching the company's performance. Wall Street estimates an earnings per share (EPS) of $2.52 and revenue of approximately $25.4 billion, reflecting a positive outlook for UPS.
Analysts are optimistic about UPS's potential for a second consecutive quarter of year-over-year revenue and profit growth. This optimism follows a challenging period of declining sales, as highlighted by the company's CEO. The anticipated revenue of $25.34 billion represents a 1.7% increase from the previous year, signaling a potential turnaround for UPS.
Among the 15 analysts covering UPS, 12 have issued "buy" ratings, indicating strong confidence in the company's future performance. The consensus price target is $153.73, over 15% higher than the stock's recent closing price. Analysts expect UPS to report a net income of $2.14 billion, or $2.51 per share, aligning closely with the projected EPS.
UPS has a history of surpassing earnings expectations, having exceeded the Zacks Consensus Estimate in three of the last four quarters. This track record, with an average beat of 1.5%, may influence investor decisions as they consider buying UPS stock ahead of the earnings announcement.
The company's financial metrics, such as a price-to-earnings (P/E) ratio of 20.38 and a price-to-sales ratio of 1.28, provide insight into investor sentiment. With a debt-to-equity ratio of 1.56, UPS's use of debt financing is notable. The current ratio of 1.14 indicates its ability to cover short-term liabilities, reflecting a stable financial position.
Read More