Pricing, Holiday Plans, Labor in Focus When UPS Reports -- Earnings Preview
25 Octobre 2017 - 1:59PM
Dow Jones News
By Paul Ziobro
United Parcel Service Inc. is scheduled to report its
third-quarter earnings before the market opens Thursday. Here is
what you need to know:
EARNINGS FORECAST: Analysts polled by Thomson Reuters expect UPS
to earn $1.45 a share, compared with $1.44 a year earlier, in line
with a forecast the logistics and package-delivery company issued
in July. For the full year, UPS expects adjusted earnings of $5.80
to $6.10 a share.
REVENUE FORECAST: Revenue of $15.62 billion is expected, up from
$14.93 billion a year ago.
WHAT TO WATCH:
PEAK PREP: UPS executives will likely lay out their views for
the holiday season and how they plan to handle the surge in
packages flowing through the system. UPS has spent billions on
upgrading and opening new facilities, adding larger jets and hiring
seasonal workers. It also plans to slap on surcharges for packages
shipped during the busiest weeks and to penalize shippers for
missing volume forecasts.
FREIGHT: While UPS's shipments to consumers and homes get a lot
of attention, its other businesses could benefit from trends Citi
analysts recently noted, including growing air-cargo volumes and
strong domestic freight shipments.
PRICE HIKE: Investors will look to see how aggressive UPS will
be when it comes to raising prices next year. FedEx said in
September it planned a 4.9% average price increase for 2018, while
the U.S. Postal Service in October proposed raising rates 3.9% on
its parcel business. UPS is likely to follow.
UNION TALKS: UPS recently kicked off talks with its largest
union, the International Brotherhood of Teamsters, to address the
current contract that expires in July. Much has changed since it
was signed in 2013, including the leaps e-commerce has made, which
will have to be addressed in the new agreement.
Write to Paul Ziobro at Paul.Ziobro@wsj.com
(END) Dow Jones Newswires
October 25, 2017 07:44 ET (11:44 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
United Parcel Service (NYSE:UPS)
Graphique Historique de l'Action
De Sept 2024 à Oct 2024
United Parcel Service (NYSE:UPS)
Graphique Historique de l'Action
De Oct 2023 à Oct 2024