Comparing UPS and FedEx Stocks: Who Will Perform Better This Earnings Season?

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United Parcel Service (UPS) is set to report its Q1 results on April 28, 2023, amidst key industry scrutiny regarding shipping and logistics trends post-tariffs. In contrast, FedEx demonstrated robust performance in its fiscal third quarter, achieving sales of $24 billion—up 8% year-over-year—and earnings per share (EPS) of $5.25, surpassing expectations significantly.

Market analysts predict UPS’s Q1 sales will decline by 2% to $21.08 billion, with EPS expected to drop by 28% to $1.06 per share, down from $1.49 in the previous year. In comparison, FedEx’s recent success and raised annual guidance suggest a potential turning point for logistics firms navigating tariff impacts, as both companies contend with similar regulatory environments.

As of now, UPS shares have risen by 8% over the past month, while FedEx stocks have surged 10%. However, UPS is noted for its appealing 6.13% annual dividend yield, while its payout ratio has climbed above 90%, indicating most earnings are directed towards dividends amid declining profits.

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