Parcel delivery company UPS (NYSE:UPS) will be reporting earnings tomorrow morning. Here’s what to look for.

United Parcel Service missed analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $21.82 billion, down 1.1% year on year. It was a softer quarter for the company, with a miss of analysts’ operating margin estimates. The company slightly lowered full year revenue guidance, and full year operating margin guidance by a more significant amount.

Is United Parcel Service a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting United Parcel Service’s revenue to grow 5.1% year on year to $22.13 billion, a reversal from the 12.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.62 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at United Parcel Service’s peers in the transportation and logistics segment, some have already reported their Q3 results, giving us a hint as to what we can expect. FedEx posted flat year-on-year revenue, missing analysts’ expectations by 1.5%, and Norfolk Southern Corporation reported revenues up 2.7%, falling short of estimates by 1.2%. FedEx traded down 15.3% following the results.

Read our full analysis of FedEx’s results here and Norfolk Southern Corporation’s results here.

Investors in the transportation and logistics segment have had steady hands going into earnings, with share prices flat over the last month. United Parcel Service is up 1.3% during the same time and is heading into earnings with an average analyst price target of $145.17 (compared to the current share price of $131.25).

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