Does The Street Have United Parcel Service Figured Out?

United Parcel Service (NYSE: UPS  ) is expected to report Q2 earnings on July 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict United Parcel Service's revenues will increase 1.8% and EPS will decrease -1.7%.

The average estimate for revenue is $13.59 billion. On the bottom line, the average EPS estimate is $1.13.

Revenue details
Last quarter, United Parcel Service chalked up revenue of $13.43 billion. GAAP reported sales were 2.3% higher than the prior-year quarter's $13.14 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.04. GAAP EPS of $1.08 for Q1 were 8.0% higher than the prior-year quarter's $1.00 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 23.2%, 20 basis points better than the prior-year quarter. Operating margin was 11.4%, 50 basis points worse than the prior-year quarter. Net margin was 7.7%, 30 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $55.89 billion. The average EPS estimate is $4.78.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,607 members out of 1,821 rating the stock outperform, and 214 members rating it underperform. Among 492 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 450 give United Parcel Service a green thumbs-up, and 42 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United Parcel Service is outperform, with an average price target of $89.00.

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