The world's largest small package carrier, United Parcel Service Inc. (NYSE: UPS), is scheduled to report its second quarter FY 2011 earnings July 26. In the last four quarters ended March 2011, the company's reported EPS exceeded analysts' consensus estimates by margins in the range of 2.90 percent to 9.10 percent.
United Parcel Service is the world's largest express carrier, the world's largest package delivery company and a leading global provider of specialized transportation and logistics services. Its primary business is the time-definite delivery of packages and documents worldwide. The UPS service portfolio also includes global supply chain services and less-than-truckload transportation, primarily in the United States. UPS has been ranked No. 1 in its industry for customer satisfaction in a national survey reported by the University of Michigan's American Customer Satisfaction Index.
For Q1 FY 2011
- UPS reported diluted earnings per share of $0.88, a 24 percent improvement over the adjusted $0.71 for the prior-year period.
- Its global revenue grew 7.3 percent to $12.58 billion, producing a 21 percent increase in operating profit to $1.4 billion.
- UPS delivered 957 million packages and expanded its operating margin by 130 basis points to 11.3 percent.
- Operating profit was $1.43 billion, up 37.5 percent, compared with operating profit of $1.04 billion in the first quarter of FY 2010.
- Earnings per share by the company beat analysts' consensus estimates by $0.03 per share.
For FY 2010
For full year 2010, UPS reported total revenue of $49.54 billion, up 9.4 percent compared with revenue of $45.29 billion reported in the previous year. Operating profit for the year was $5.9 billion, up 55 percent. Adjusted diluted earnings per share were $3.56, up 54 percent, and $3.48 on a reported basis, up 63 percent.
Based on the company's performance, UPS has increased its guidance for 2011 diluted earnings per share to a range of $4.15 to $4.40, an increase of 17 percent to 24 percent over 2010 adjusted results.
For the second quarter, analysts' EPS estimates range from a low of $0.98 to a high of $1.10 per share, compared with a consensus estimate of $0.84 per share to $1.04 per share in the year ago quarter. For this quarter, analysts' revenue estimates range from a low of $12.81 billion to a high of $13.36 billion, compared with a consensus estimate of $12.20 billion to $13.10 billion in the same quarter a year ago. For the second quarter, the consensus EPS forecast has remained unchanged at $1.04 per share for the last 60 days.
In the last 52-weeks, UPS has been trading in the range of $59.23 to $77. The stock last traded at $73.25, down 0.49 points, or 0.66 percent on July 12.