UPS Earnings Report Looms: Analysts Bearish as Delivery Giant Faces Revenue Decline

United Parcel Service (UPS), the prominent parcel delivery company, is gearing up to report its latest earnings this Tuesday before the market opens. The company had a strong previous quarter, beating analysts' revenue expectations by 2.1% and reporting revenues of $21.55 billion, flat year-on-year.

However, the outlook for this quarter is less optimistic. Analysts are forecasting a 4.4% year-on-year decline in UPS's revenue, which would mark a further deceleration from the 1.1% decrease recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.57 per share.

Heading into the earnings report, analysts covering UPS have grown increasingly bearish, with 10 downward revisions to revenue estimates over the last 30 days. The company has also missed Wall Street's revenue targets six times over the past two years.

The transportation and logistics sector has seen some positive sentiment among investors, with share prices up 6.8% on average over the last month. UPS's stock is up 2.5% during the same period and is currently trading at an average analyst price target of $113.27, compared to the current share price of $103.50.