Does The Street Have United Parcel Service Figured Out?

United Parcel Service (NYSE: UPS  ) is expected to report Q4 earnings on Jan. 31. 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 expand 1.9% and EPS will expand 7.8%.

The average estimate for revenue is $14.44 billion. On the bottom line, the average EPS estimate is $1.38.

Revenue details
Last quarter, United Parcel Service recorded revenue of $13.07 billion. GAAP reported sales were 0.7% lower than the prior-year quarter's $13.17 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 $1.06. GAAP EPS of $0.48 for Q3 were 56% lower than the prior-year quarter's $1.09 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 17.3%, 670 basis points worse than the prior-year quarter. Operating margin was 5.9%, 670 basis points worse than the prior-year quarter. Net margin was 3.6%, 450 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $53.99 billion. The average EPS estimate is $4.58.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,607 members out of 1,818 rating the stock outperform, and 211 members rating it underperform. Among 506 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 464 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 $83.85.

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