Will United Parcel Service (UPS) Stock Be Affected by Earnings Guidance?

NEW YORK (TheStreet) -- United Parcel Service Inc. (UPS) issued its full year 2015 earnings per share guidance this afternoon, and the package delivery company is expecting earnings for fiscal 2015 to be in a range between $5.45 and $5.70, Reuters reports.

UPS' chief financial officer made the earnings guidance announcement at the company's investor conference in New York City.

So far, analysts have forecast for earnings per share of $5.71 for fiscal 2015, Reuters added.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Additionally, the company announced it will return $30 billion to shareholders over the next five years. UPS also said that it is expecting a 9% to 13% growth in earning per share from 2015 to 2019, Reuters noted.

Shares of UPS closed lower by 0.15% to $107.79 on heavy trading volume today.

Separately, TheStreet Ratings team rates UNITED PARCEL SERVICE INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate UNITED PARCEL SERVICE INC (UPS) a BUY. 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 revenue growth, growth in earnings per share, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • UPS's revenue growth has slightly outpaced the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 5.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • UNITED PARCEL SERVICE INC has improved earnings per share by 13.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, UNITED PARCEL SERVICE INC increased its bottom line by earning $4.62 versus $0.80 in the prior year. This year, the market expects an improvement in earnings ($4.96 versus $4.62).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Air Freight & Logistics industry average. The net income increased by 10.7% when compared to the same quarter one year prior, going from $1,097.00 million to $1,214.00 million.
  • The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • The gross profit margin for UNITED PARCEL SERVICE INC is currently extremely low, coming in at 13.67%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 8.49% is above that of the industry average.
  • You can view the full analysis from the report here: UPS Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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