Q4 Preview: Rising Prices Could Help UPS (UPS) Amid Macro Concerns
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Price: $99.06 --0%
Rating Summary:
18 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 24
Rating Summary:
18 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 24
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Shares of United Parcel Service Inc. (NYSE: UPS) closed up 0.14 percent Monday ahead of the release of its fourth-quarter results before the opening bell on Tuesday.
The Wall Street quarterly consensus for United Parcel Service is $1.26 per share in earnings on $14.45 billion in sales. During the fourth quarter of last year, the company reported earnings of $1.08 per share on $13.42 billion in total sales.
For the full year 2011, analysts on the Street are currently estimating $4.24 per share in earnings on $53.39 billion in total sales.
The fourth quarter conference call is scheduled for 8:30 am ET.
According to data from Bloomberg, shares of United Parcel Service have 18 Buy ratings, 10 Hold ratings and no Sell ratings. The average price target on shares of UPS is $84 with a range from $70 to $116.
Analyst Comments:
For the quarter, JPMorgan is slightly bearish with its earnings estimate of $1.22 per share. The firm reaffirmed a Neutral rating and $82 price target on the shares ahead of its fourth quarter release. The firm downgraded the stock from Overweight to Neutral back on January 12th.
An analyst at JPMorgan commented on fiscal 2012, “We believe that domestic package pricing trends are likely to remain favorable for UPS in 2012 but lacking a significant acceleration in the economy, domestic volume growth may remain muted. Given our expectations of cost pressure from rising pension expense and a potential slowing in the pace of productivity improvement, we believe that EPS growth is likely to decelerate significantly for UPS in 2012. In our view, the Consensus estimate of $4.76/share is too optimistic and we suspect that UPS is likely to provide 2012 EPS guidance below Consensus.”
Deutsche Bank is bullish on the quarter with its earnings estimate of $1.29 per share for the quarter. The firm notes its above average estimate reflects positive pricing trends, an increase in U.S. Domestic Package ADV and an increase in International Package ADV.
An analyst at Deutsche Bank highlighted, “UPS announced that it has switched its pension accounting to mark to market methodology. The switch added $0.12 per share to 2011 EPS and boosted our fourth quarter earnings estimate by $0.03/share as historical pension gains or losses are no longer amortized. UPS will also be recognizing an $827 million (-$0.51/share) non-cash below-the-line mark to market charge. While the mark to market accounting change will not change UPS' cash obligations, it increases the visibility of core operations and enhances the company's fourth quarter and 2012 earnings outlook.”
The Wall Street quarterly consensus for United Parcel Service is $1.26 per share in earnings on $14.45 billion in sales. During the fourth quarter of last year, the company reported earnings of $1.08 per share on $13.42 billion in total sales.
For the full year 2011, analysts on the Street are currently estimating $4.24 per share in earnings on $53.39 billion in total sales.
The fourth quarter conference call is scheduled for 8:30 am ET.
According to data from Bloomberg, shares of United Parcel Service have 18 Buy ratings, 10 Hold ratings and no Sell ratings. The average price target on shares of UPS is $84 with a range from $70 to $116.
Analyst Comments:
For the quarter, JPMorgan is slightly bearish with its earnings estimate of $1.22 per share. The firm reaffirmed a Neutral rating and $82 price target on the shares ahead of its fourth quarter release. The firm downgraded the stock from Overweight to Neutral back on January 12th.
An analyst at JPMorgan commented on fiscal 2012, “We believe that domestic package pricing trends are likely to remain favorable for UPS in 2012 but lacking a significant acceleration in the economy, domestic volume growth may remain muted. Given our expectations of cost pressure from rising pension expense and a potential slowing in the pace of productivity improvement, we believe that EPS growth is likely to decelerate significantly for UPS in 2012. In our view, the Consensus estimate of $4.76/share is too optimistic and we suspect that UPS is likely to provide 2012 EPS guidance below Consensus.”
Deutsche Bank is bullish on the quarter with its earnings estimate of $1.29 per share for the quarter. The firm notes its above average estimate reflects positive pricing trends, an increase in U.S. Domestic Package ADV and an increase in International Package ADV.
An analyst at Deutsche Bank highlighted, “UPS announced that it has switched its pension accounting to mark to market methodology. The switch added $0.12 per share to 2011 EPS and boosted our fourth quarter earnings estimate by $0.03/share as historical pension gains or losses are no longer amortized. UPS will also be recognizing an $827 million (-$0.51/share) non-cash below-the-line mark to market charge. While the mark to market accounting change will not change UPS' cash obligations, it increases the visibility of core operations and enhances the company's fourth quarter and 2012 earnings outlook.”
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