Excluding items, the company earned $2.13 per share, beating estimates of $1.07 per share. Upgrade to MarketBeat Daily Premium to add more stocks to your watchlist. We operationalized what they wanted. We really do appreciate all the thoughtful questions that came to Brian and me today, so thank you for that. Our first principle is our values. Please go ahead. Scott Schneeberger -- Oppenheimer and Company Inc. -- Analyst. It's great. Thanks very much. In terms of the evolution, we actually saw that number get better. Good morning. 2Q20 Earnings Presentation 1.6 MB. Carol, again, congrats and welcome. In response, we adjusted our network to support our customers' needs, we managed cost and leaned into three significant changes in demand in the markets we serve. Obviously, I wasn't part of that, but there was a Search Committee that was formed, and they looked at here are the qualifications of the next CEO, and they looked at our internal team, as well as external team, and decided to go outside for the role, and I was delighted that they asked me to take the role. The number one enabling capability to grow into that space is time in transit. While the media is focusing on Elon Musk’s rocket launch… So SMBs, which we're also very focused, on they were up 11% in the quarter. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Carol, congrats on the appointment of CEO. If this sounds like it's PSR for UPS, which may be the case, just in that context, I was hoping you can expand on the commentary of excess costs that can be removed. If you've got money invested in the stock market, but are confused as to what to do next...This is the can't miss interview of 2020. But can you focus on revenue quality to help some of that moderation? Sir, the floor is yours. Our next question comes from the line of Scott Schneeberger of Oppenheimer. MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Meanwhile, as Carol said, we will focus on controlling what we can control. We are developing specific actions and metrics against our strategic efforts, and once finalized, we'll share them with you so that you can measure our progress. Share. While our U.S. operating margin declined by 170 basis points from last year largely due to certain expense items that Brian will explain, we were pleased with 580 basis points of sequential improvement from what we reported in the first quarter. We are a big believer as a board in the company's culture because we think it is a competitive point of differentiation. For some context, the full-year 2019 split was 46% B2B. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. Our next question will come from the line of Scott Group, Wolf Research. UPS grew revenue by 15.9%, operating profit by 9.9%, and earnings per share by 10.1% from the year-ago quarter, representing even better growth than it … Among the positive and negative effects ahead of us, we remain confident in our ability to improve U.S. margins on a long-term basis. Speeding up time and transit and improving the moments that matter, so we create greater loyalty to be measured by gains in our Net Promoter Score. We're focusing on the wildly important tier. While it is early in the process, the good news is that we already have the right strategy in place: customer first, people-led, innovation-driven. New Tailwind for Tesla (NASDAQ:TSLA): Have You Bought In Yet? Our global network is best-in-class, and our people are the hardest working people I've ever met. And related to that, maybe, Brian, could you provide any perspective on the previous guidance that you had provided in terms of the incremental EPS benefit by 2022 of $1 to $1.20? We have five core UPS principles that underpin our actions. As we think about leaning into SMBs, it's not just about time in transit, however, it's also about a better customer experience. Optimizing the capacity that we have. For the quarter, consolidated revenue increased 13.4% to $20.5 billion. All rights reserved. Let me share with you how I've been spending my time since onboarding as CEO. We need to drive more leverage in our payroll given it's the largest expense that we have. Returns as of 12/31/2020. That's based on customer size. I'm happy to do so. Please go ahead. And won't we find not only to fill that capacity at, perhaps, nonnutritive ways? July 30, 2020 at 8:30 AM EDT Q2 2020 United Parcel Service, Inc. Earnings Conference Call. And then Kate, with her team, they're talking to our customers, customer by customer, and how we will best manage through peak. Thanks. I don't like anything unless it starts with a B because it's just not worth our time. So we're going to really look to sweat the assets that we have to get more off of that investment that we've made over time. We're moving to analytical decision science, as Juan and his team built out our digital factory, and that's going to free up productivity. Ravi Shanker of Morgan Stanley. If your part-time, it kicks in about six months. So we'll accelerate the investment. The cost curve isn't right, but it was pretty cool because the productivity of that arm was about 50% higher than a human being. The B2B growth was down 22% in the quarter. UPS (UPS) delivered earnings and revenue surprises of 104.81% and 17.96%, respectively, for the quarter ended June 2020. So expect to hear us talk about that over time. Hey, great. US Offers Vaccine Makers Supply Chain Support As Delivery Tempo Increases . Thank you. Identify stocks that meet your criteria using seven unique stock screeners. Cost per piece was down 2.7% year over year and decreased sequentially 8.4%, driven by lower fuel costs and our ability to scale and flex the network as volume surged. That's on a cumulative basis. On the expense side, cost per piece declined 8.2% primarily due to lower fuel cost and greater network efficiencies. There are capacity constraints in the United States, which gives the opportunity to manage through with pricing. They lost 25% of the top line during that recession. How do you fix the numerator or how much cost can you take out? And we will now have leading capabilities in Mexico, both inside Mexico and exporting out. Carol, in your 17 years on the UPS board, you've witnessed several substantial changes in the competitive landscape for the company. I know you said you expect volumes to moderate a bit in the back half of the year. And in the pilots, we saw a 2-percentage-point reduction in churn. Good morning. To improve transparency, we brought the 10-Q balance sheet and cash flow statements forward and have included them in the materials released today. And on the international side, I think our margin will be quite healthy in that side as well. When we're done, we will be at parity or better in 20 of the 25 markets that matter in the U.S. We will reach 90% of the U.S. population in three days. Hey, thanks and congrats, Carol. Ken Hoexter -- Bank of America Merrill Lynch -- Analyst. Asia was the first region to face the pandemic and was also the first to reopen, which led to a strong increase in export volume and revenue as we came out of the first quarter. So lots of revenue, lots of demand as it stands right now. Thank you. So that gives you a sense of the cost that we're looking to take out. Also, opportunities to manage with our customers. As we've talked this morning, I gave an example of not buying aircraft to have excess capacity. Please go ahead. Diluted earnings per share was $2.13, up 8.7% from the same period last year. Where that may sit given some of the changes here, particularly year to date? Financials 75.9 KB. 4 min read United Parcel Service ’s UPS shares rose in early trading following better-than-expected second-quarter 2020 results. Our liquidity is very strong. We have an opportunity to grow into that space, but we need some enabling capabilities. And then the discussion of end markets that are particularly strong or weak over in that category. Thank you. Due to ongoing COVID-related sheltering in place, retail store closures, and changes in U.S. consumer spending fueled by the economic stimulus, we experienced unprecedented demand and record high-volume levels. For example, on May 31, we introduced new surcharges of certain volumes. I'd like to take a moment to congratulate our entire international team for delivering a very strong quarter despite a tough operating environment. The dark blue line represents the company's actual earnings per share. Is it $1 billion? © 2020 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. See what's happening in the market right now with MarketBeat's real-time news feed. We've been promoting people. Historical Financials 78.5 KB. Consolidated revenue rose 13.4% from last year to $20.5 billion. The uptick in e-commerce demand amid the current market uncertainty is likely to have aided UPS' Q2 performance. So as we think about our small and medium businesses, we're seeing those June trends of growth continue into July in the high teens range. So we're investing in incentives for our people. But if you look through 2020 into '21 and beyond, you should expect the margin to start to go in the right direction. Just had one on capacity in U.S. domestic. For example, airfreight led the segment due to the surge in market rates out of Asia, sparked by the sharp decline passenger belly space. But like any company who is 113 years old, we've overengineered much of what we've done, and I'll give you an example of that. We have initiatives under way. As we evaluate new market realities, we will be making decisions faster based on data and analytics. Zacks Equity Research. So the margins will always be stronger outside the United States than they are inside the United States. My name is Stephen, and I will be your facilitator today. Brian Ossenbeck -- J.P. Morgan -- Analyst. In our 113-year history, UPS has become a trusted global logistics leader, but what got us where we are today will not get us to where we need to go in the future. Overall, Asia outbound volume grew 46.8% in the quarter and went up by double digits to all major regions of the world. We will look to pivot the customer and the way we go to market to optimize the network, and I hope that answers your question. It's not enough. In my prepared remarks, I talked about -- it's all about being better, not bigger. Yes, Carol alluded to the investments in time in transit, and we think that's a critical investment to continue to invest to drive the service for our customers and speed up time in transit. On a net basis, $1.1 billion in savings. What you may or may not change, what you like or don't like about what's been undertaken to date? So don't expect to see a big cultural shift just because I came in for this time, and I am delighted to be here. Instead, we saw just the opposite. Financials 70.5 KB. UPS investors have reasons for optimism about its next earnings report, which is due on July 22. What do I mean by that? First, we remain unable to predict the extent of the business impact or the duration of the coronavirus pandemic or reasonably estimate UPS 2020 revenue and diluted earnings per share. Atlanta-based UPS said net income rose 4.7% to $1.77 billion in the quarter ended June 30. We're approaching $1. Our leadership team is focused on enabling success for all UPSers and creating value for our shareowners. UPS Inc. reported strong results in the second quarter, as a surge in deliveries to homes and businesses has helped lift the company through the COVID-19 pandemic. Just, perhaps, on the growth side. We will get the network righted before we think about investing more dollars in the network. The dividend is payable on September 9, 2020 to shareowners of record on August 24, 2020. Now IT will help with that, and it certainly has helped, but we need to double down on how we can automate the inside of our facilities to drive more productivity. Today, I will discuss our quarterly performance and current trends in our business, which the teams are navigating well. Get short term trading ideas from the MarketBeat Idea Engine. Share. If I look at the profitability of ground resi, which now makes up 44% of our total ground business in the U.S., the profitability was up year on year. You have to build accountants to account for those products. International supply chain and freight will continue to adapt to market dynamics. First, we quickly leaned into the opportunity created by the reduction of passenger belly space. So let me give you an example of a change that we've just launched this year. And then just to follow up, I think Carol answered it, to the second half of your question on the $1 to $1.10. Are these kind of the start-up costs, and that's going away? And that's what we're doing with time in transit. To see all exchange delays and terms of use please see disclaimer. Take credit for that. Two key learnings during that time. Revenue was up 17.3% to $13 billion, driven primarily by ground products. Did I hear you say that international will stay at these levels in the second half? We wish you a very good remainder of your day, and then we look forward to speaking with you next quarter. If you tax effect that and you see outstanding shares, it's about $0.95 of EPS on a cumulative basis. But it's much more than pricing. Zacks. In general, the parts of our business that align to sectors with elevated demand did very well. So imagine what we could do if we could drive some productivity and leverage in our payroll. Financials 75.9 KB. Well, on Transformation 1.0, I think that's what you're referring to, we began that in 2018. But within B2C, could you talk about any mix challenges that you faced in the quarter and how they may have progressed that could have hindered margins there as well? UPS earnings call for the period ending September 30, 2020. Looking at the overall enterprise. Our performance demonstrates the agility of our global integrated network. Looking at supply chain and freight. So I mean, you mentioned that, at least for the near to midterm, you'd try to do more with less and that should translate into, perhaps, some lower capex levels. Our final question will come from the line of Bascome Majors of Susquehanna. Scott Childress -- Investor Relations Officer. And Jordan, if I can just add, the B2C growth in Europe in the quarter or in international in the quarter was up 95%. ), Access our premier research platform that includes MarketBeat Daily Premium, portfolio monitoring tools, stock screeners, research tools, a real-time news feed, email and SMS alerts, the MarketBeat Idea Engine, proprietary brokerage rankings, extended data export tools and much more. And tax affected, it's about $0.95 of EPS on a cumulative basis. And they said, money. While average daily volume growth was led by many of our larger customers, SMBs rebounded over the quarter, from a decline of 7.2% in April to growth of 17.8% in May, and 22.4% in June. Yes. And activity on us, go to our hours. And if we're spending on capital on enabled capabilities or services or products that they're not willing to pay for, I don't know why we would spend the capital. For all whole kinds of reasons, and it's not -- we don't need to look back for those reasons. From a return on invested capital, look, we've gone down about 400 basis points as we look back the last couple of years on ROIC. I'm honored to be hosting my first UPS earnings call. I really wanted to kind of make sure I understood sort of how that answer pertains to sort of profit growth on the domestic side. I know the visibility is not great, but specifically in B2B, U.S. and, frankly, everywhere, just how did you see that evolve through the quarter? We've talked to you in the past about Transformation 1.0, and we're well down the path of Transformation 1.0. By our estimate, both our time in transit and weekend enhancements drove roughly $100 million of incremental revenue in the second quarter. The charges resulted from transformation-related activities in the international and U.S. domestic segments. The bottom line also declined 17.3% year over year. So maybe I'll take that one, Scott, and Carol can chime in. And now I'll turn the call over to Carol. As we think about optimizing the network, to your specific question on volume, it's about being better, not bigger. It was still down overall, but April, May, June, as it progressed -- we started the quarter down 38%, got a little better, down 20%, finished June at down 8%. And as we look forward, it's about rightsizing, optimizing the investments that we had before we think about continued investments in capital. Don't forget that we have over 15,000 access points that can be used to address the capacity issue. We actually like this cross-border opportunity to grow B2C business, and the margins are quite healthy. Through this time of global pandemic and social unrest, UPS is keeping the world moving. There's 100 weight in commercial, so that's more industrial. The New York Times reports "No existing defense can stop it." Operating margin declined 170 basis points year over year. And any thoughts on where the cultural shift that UPS is headed over the next several years with you at the helm? In terms of experience, in terms of just knowledge in certain areas, and they map that up against both internal and external candidates. View which stocks are hot on social media with MarketBeat's trending stocks report. UPS to Report Q2 Earnings: What's in Store for the Stock? The only thing I would add is that value is defined by what the customer is willing to pay for. First, our ability to shift air capacity to where it was needed enabled us to meet the strong demand out of Asia using both our own assets and asset-light solutions. United Parcel Service (UPS) reports earnings on 1/27/2021. Our expenses increased in the quarter by 19.5% and were in line with activity levels, including volume growth. FedEx easily topped fiscal Q2 forecasts late Thursday, and predicted.more earnings growth for the rest of the fiscal year.But FedEx stock fell late. As a percentage of total volume, B2B shipments were 27% in early May. Thank you. You can't do it overnight. Given all these factors, the U.S. domestic margin could be lower in the second half of the year relative to the first half. And why am I focusing on SMB? We're taking actions actually to drive profitability in the business. Now that matters because in this segment, for every reduction in churn, it's $170 million in revenue. And Brian, look forward to working with you both. There's a lot going on in the ability to transform the way we run our business. Please go ahead. In fact, through our digital-access program, we captured 120,000 new customer accounts, a significant increase from recent trends. Through the second quarter, we faced challenges from the coronavirus pandemic and resulting recession. We've talked to you in the past about Orion. Most scenarios suggest continued uncertainty, which is likely to yield a more gradual economic recovery. We are committed to continuing nearly 50 years of stability and growth in the dividends we pay. And we have capacity to handle the peak volume that we are anticipating this year. That's not enough, candidly. So again, our theme is better, not bigger. United Parcel Service (UPS) Q2 2020 Earnings Call Transcript UPS earnings call for the period ending June 30, 2020. Yeah. Please go ahead. UPS Releases 3Q 2020 Earnings. So first, if you can just clarify the second-half margin comment, is that lower than the second quarter or lower than the full first half? Hi. Not getting better, but it's not getting worse on the pure B2B. Q2 2020 United Parcel Service, Inc. Earnings Conference Call. And you've been part of steering the board's strategy to bring in some more outside perspectives in the senior management, which has certainly seemed to reach a new level, appointing you as CEO here. 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