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Speedy delivery service United Parcel Service (NYSE: UPS) delivered a mixed bag of third-quarter results on Thursday.
The company reported earnings of 55 cents per share, topping the consensus estimate by two cents per share. While these results were better than the consensus estimate, they are a far cry from the 96 cents per share earned in the same quarter a year ago.
Quarterly sales came in at $11.15 billion, short of the consensus estimate of $11.17 billion and last year's $13.1 billion.
Looking ahead, UPS expects fourth-quarter earnings to come in between 58 cents and 65 cents per share. The current Wall Street estimate calls for earnings of 64 cents per share.
In pre-open trade, UPS was roughly 1% lower, as it seems investors are focusing on the negative aspects of the company's earnings announcement. If this pre-market trading action carries on into the regular trading session, UPS may need to rely on the potential support held in its 10-week moving average. This trendline is currently positioned in the upper reaches of the $55 region. If the stock falls below this trendline, UPS's 20- and 50-week moving averages are both positioned in the $54 region. Further below these two trendlines is UPS's 10-month moving average. This trendline is the last bastion of potential long-term support and a breach of this trendline could signal a pronounced downtrend.
As for potential resistance, UPS's 20-month moving average lurks overhead. The last time UPS finished a month atop this trendline was early 2008. If this trendline continues acting as resistance, UPS could be in for a tough road.
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