Discuss: Earnings Preview: UPS - Brown Cafe

cheryl · 10-21-2009, 08:34 AM

Earnings Preview: UPS - Google
BY THE NUMBERS: Analysts polled by Thomson Reuters, on average, expect UPS to post a profit of 52 cents a share on revenue of $11.2 billion. Analysts' projections generally exclude one-time items. The company posted a net profit of $970 million, or 96 cents a share, in the third quarter of 2008 on sales of $13.11 billion.

ANALYST TAKE: JP Morgan analyst Thomas R. Wadewitz said in a research note last month that his firm believed that UPS was being viewed as having less operating leverage and that perception had been a major driver of the underperformance in UPS stock versus most of its industry peers in 2009 to that point. "In our view, UPS stock has lagged too much, and the stock does not reflect the boost a turn in the U.S. economy would provide to UPS earnings performance and to the stock," he wrote. The analyst said he believes that gradual improvement in parcel/express volumes is likely.

brownrodster · 10-21-2009, 09:16 AM

If you use the Warren Buffet way of determining the intrinsic value of a corporation then UPS stock is overpriced.

Not to mention that he would never buy UPS stock because of the union workforce...

I'm just saying that I'm not buying UPS stock unless it goes back down to the low 40's or even lower.

ups79 · 10-21-2009, 01:34 PM

Quote:

Originally Posted by brownrodster

If you use the Warren Buffet way of determining the intrinsic value of a corporation then UPS stock is overpriced.

Not to mention that he would never buy UPS stock because of the union workforce...

I'm just saying that I'm not buying UPS stock unless it goes back down to the low 40's or even lower.

Don't know where you have been but he has purchased shares of UPS with the last 12 months.

brownrodster · 10-21-2009, 02:35 PM

Quote:

Originally Posted by ups79

Don't know where you have been but he has purchased shares of UPS with the last 12 months.

I did not know that. What price(s) did he pay?

He has always been steadfastly against purchasing companies with a union workforce. So this surprises me.

*edit* Looked around on the net. Looks like Buffet's company owns 1.429 million shares of UPS. But they haven't bought any since 2006.

Our stock still seems overpriced using the criteria in the book "The Warren Buffet Way."