NEW YORK (TheStreet) -- Shares of United Parcel Service (UPS) - Get Report are down 0.67% to $109.74 in early-afternoon trading on Wednesday, ahead of the company's fiscal 2016 second quarter results, due out before Friday's market open.
Wall Street is expecting earnings of $1.43 per share on revenue of $14.65 billion. Last year, the company reported earnings of $1.35 per share on revenue of $14.1 billion.
UPS is expected to beat Wall Street's earnings estimates as a result of continued U.S. domestic package growth, Zacks.com reports. The company has reported surprise earnings beats for the last four quarters, with a 6.1% average beat, Zacks.com said.
But UPS's revenue for the current quarter is expected to take a hit from lower fuel surcharges and adverse foreign currency movements, Zacks.com reports.
The Atlanta, GA-based company is the world's largest package delivery company.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate UNITED PARCEL SERVICE INC as a Buy with a ratings score of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and increase in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: UPS