Investors will get a look at how the global economy is faring given rising interest rates and inflation when
United Parcel Service
reports its fourth- quarter numbers. Also on the table is a look into the labor market.
Earnings from the logistics giant are due Tuesday morning. Wall Street is looking earnings per share of $3.58 from sales of $28.1 billion.
For the fourth quarter of 2021, UPS (ticker: UPS) reported earnings per share of $3.59 from sales of $27.8 billion. Earnings are expected to be a touch lower than a year ago, even as sales increase, as UPS continues to battle through rising costs.
UPS is due to negotiate a new contract with the Teamsters union in 2023.
Wall Street expects sales of about $100 billion for 2023. That is down about $2 billion from 2022. Operating profit margins are forecasted to come in at about 13.1%, while UPS has told investors to expect an operating profit margin of 13.7% for all of 2022.
Any forecasts more upbeat than what the Street expects for 2023 should help the shares.
Options markets imply the stock will move about 5%, up or down, after earnings. UPS shares fell 0.3% after the company reported its third-quarter numbers.
UPS has scheduled a conference call for 8:30 a.m. Eastern time to discuss results. Whatever management has to say about current business trends could offer a good read on the overall economy. The supply chain and labor cost pressures that have hit many businesses in recent quarters are likely to come up as well. Negotiations with the Teamsters likely will be a third topic.
UPS stock closed down 2.8% in Monday trading. The
Dow Jones Industrial Average
fell 1.3% and 0.8%, respectively.
Write to Al Root at email@example.com