United Parcel Service Inc. (NYSE: UPS) lowered its Q2 guidance just under a month ago amid worries that high increases in fuel costs would shave a bit off its earnings, which is coming up this Monday. While the company is still expected to post an EPS figure of $0.82 for its second quarter, this would be an 18% drop from the year-ago period. Its stock has recently hit a 52-week low, but then again, a recent analyst upgrade has the shares rallying a bit to offset that low.

Although fuel costs are affecting just about any company involved in transportation, the business and consumer shipping industry is still apparently going decent even in a downbeat economy. UPS said that package volume was being negatively affected by the U.S. economy, though -- and this is having an effect on international package volume as well. It's not that businesses and consumers have stopped shipping -- perhaps they are delaying shipping or forgoing it together on some items.

UPS did say that its Supply Chain and Freight segment was expected to outdo expectations for the second quarter, which will be a nice bright spot for the company. So, I have to ask: have you stopped ordering products (as a business or consumer) that require shipping? That is what UPS is implying with the statement it came out with on June 23rd when it lowered Q2 guidance. My bet -- UPS will earn $0.80 per share, even lower than its lowered guidance. What's your call?