United Parcel Service (UPS) is expected to report Q4 earnings before the market open on Tuesday, February 2 with a conference call scheduled for 8:30 am ET.

GUIDANCE

Analysts are looking for EPS of 74c and revenue of $12.22B. The consensus range is 63c-75c for EPS, and $11.77B-$12.58B for revenue, according to First Call.  UPS reported mixed Q3 results, beating EPS while slightly missing on revenue estimates.  Following a recent spate of good news investors will be looking for UPS to surpass Q4 estimates.

ANALYSTS' VIEWS

On January 13, RBC Capital upgraded the stock to Outperform from Sector Perform, and raised its target to $72 from $60 on the back of UPS’ increased Q4 guidance given a week earlier.  On January 8, the company raised its Q4 EPS guidance to 73c-75c, up from prior estimates of 58c-65c. Q4 consensus is 63c.  On January 4, RW Baird upgraded UPS to Outperform from Neutral, citing leverage, improved industry pricing, and cost savings.  The price target was raised to $70 from $61.  In November the company forecast that holiday deliveries would improve slightly over 2008 levels.  Also, UPS CEO Scott Davis told Reuters that he expects volume growth in FY10 and as a result, the company intends to hike shipping rates. 

Recent news has suggested the company has been firing on all cylinders heading into 2010.  The stock has fallen about 7% from its 52-week high of $63.38, reached in early January.  However, it’s up only marginally since Q3 results were released, despite an abundance of good news.