United Parcel Service's UPS.N shares were down 1.4% on Monday to $113.24 ahead of quarterly results due before the bell on Tuesday, as investors eye progress on its strategy to prioritize higher-margin shipments.
The Atlanta, Georgia-based package delivery giant is expected to post second-quarter adjusted EPS of $1.66, versus $1.55 a year ago, and revenue up about 3% year over year to $21.81 billion, according to LSEG data.
In the prior quarter, its profit fell as it scaled back lower-margin deliveries for its top client Amazon AMZN.O to focus on more profitable business.
The stock is now up about 14% year to date, outperforming the S&P 500's .SPX 8% rise.
UPS recently traded at 15x forward earnings, in line with its five-year average, while rival FedEx FDX.N recently traded at 16x forward P/E.
Of 31 analysts covering UPS, 15 rate the stock a "strong buy" or "buy", 12 say "hold" and 4 say "sell"; median price target is $115.
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