United Parcel Service ( UPS Quick Quote UPS - Free Report) reported second-quarter 2021 earnings (excluding a penny from non-recurring items) of $3.06 per share, beating the Zacks Consensus Estimate of $2.75. The bottom line surged 43.7% year over year with strong performances across all segments. Quarterly revenues of $23,424 million also outperformed the Zacks Consensus Estimate of $23,085.4 million. The top line increased 14.5% year over year, driven by higher package delivery demand. Overall operating profit soared 47.3% year over year to $3.3 billion in the second quarter, boosted by double-digit growth in adjusted operating profit across all segments. At the end of the second quarter, UPS generated free cash flow of $6,804 million, up 74.7% year over year. The company’s capital expenditures were $1,670 million at the end of the same period. Segmental Details
U.S. Domestic Package revenues increased 10.2% year over year to $14,402 million in the second quarter, driven by 13.4% increase in revenue per piece owing to robust improvement in all products. Segmental operating profit (adjusted) jumped 37.9% year over year to $1,675 million in the quarter. Adjusted operating margin in the June quarter was 11.6%.
Revenues at the International Package division summed $4,817 million, up 30%. The segment’s performance was driven by strong demand in Europe. Segmental operating profit (adjusted) totaled $1,190 million in the reported quarter, up 41.3%. Supply Chain and Freight revenues augmented 14.3% to $4,205 million, aided by strength in demand across all businesses. Operating profit (on an adjusted basis) soared 52.8% to $408 million in the June quarter. Outlook
UPS, currently carrying a Zacks Rank #3 (Hold), anticipates consolidated operating margin to be approximately 12.7% in the current year. Return on invested capital is expected to be approximately 28%. Capital expenditures are estimated to be $4 billion in 2021. For the remainder of the year, the company expects effective tax rate of about 23%. You can see
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Transportation sector, Delta Air Lines ( DAL Quick Quote DAL - Free Report) , J.B. Hunt Transport Services ( JBHT Quick Quote JBHT - Free Report) and Kansas City Southern ( KSU Quick Quote KSU - Free Report) recently reported second-quarter 2021 results. Delta, currently carrying a Zacks Rank of 3, incurred a loss (excluding $2.09 from non-recurring items) of $1.07 per share, narrower than the Zacks Consensus Estimate of a loss of $1.41. Total revenues of $7,126 million also topped the Zacks Consensus Estimate of $6,340.9 million. J.B. Hunt, presently carrying a Zacks Rank #3, reported earnings of $1.61 per share, surpassing the Zacks Consensus Estimate of $1.55. Total operating revenues of $2908.4 million outperformed the Zacks Consensus Estimate of $2722 million. Kansas City Southern, carrying a Zacks Rank #4 (Sell) at present, reported earnings (excluding $6.23 from non-recurring items) of $2.06 per share, missing the Zacks Consensus Estimate of $2.16. Quarterly revenues of $749.5 million surpassed the Zacks Consensus Estimate of $733.1 million.