03:34 PM EDT, 10/04/2024 (MT Newswires) -- United Parcel Service ( UPS ) is expected to deliver an "in-line" Q3 earnings report, UBS Securities said in a Friday note.

The investment firm said it believes investor sentiment on the parcel delivery company "remains cautious" and that there's "potential for a positive response to an in-line report."

The company's Q4 guidance commentary projects an 8% to 8.5% domestic package margin with a flat to 1% decline in revenue per piece compared with a year earlier, UBS said.

With mid-single-digit volume growth expected for the second half of 2024, UBS estimates Q4 earnings per share at $2.55, supported by a $700 million increase in earnings before interest and taxes for its domestic business, the note said.

UBS said it believes investors are skeptical about UPS' ability to achieve a "sharp ramp up" in Q4 EPS, adding that "as a result we believe an in-line 3Q and maintaining their [Q4] framework would likely support upside for UPS stock."

UBS has a buy rating on United Parcel Service ( UPS ) with a $159 price target.

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