Shares of United Parcel Service Inc. (UPS) are showing signs of a rebound, surging 0.7% in afternoon trading on Monday. The package delivery giant is poised to end a five-day losing streak as investors eagerly anticipate the release of its second-quarter financial results.
Earnings Projections
The much-awaited results will be disclosed on Tuesday, August 8, at 6 a.m. Eastern Time. According to FactSet consensus, adjusted earnings per share are projected to decline from $3.29 to $2.49 compared to the same period last year. Additionally, revenue is expected to witness a 7% drop, amounting to $23.04 billion.
Financial Performance Overview
While UPS has consistently beaten EPS consensus estimates over the past 12 quarters, it fell short of revenue projections in the last three quarters. Following disappointing first-quarter results, the company’s stock plummeted by 10%. Unfortunately, the trend of declining share prices on the day of earnings announcements has been observed in four out of the past five quarters.
Recent Performance Comparison
Despite these recent setbacks, UPS shares have managed to gain 3.7% over the span of the last three months. In comparison, the Dow Jones Transportation Average has experienced a much stronger surge of 16%, while the Dow Jones Industrial Average has seen a more modest increase of 5.3%.
It remains to be seen whether UPS will be able to exceed expectations and reverse its downward trajectory in the second quarter. All eyes are on Tuesday’s announcement as investors eagerly await the outcome.
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