UPS raised its full-year financial outlook Tuesday after third-quarter revenue and adjusted earnings exceeded Wall Street expectations.
Third-quarter revenue increased 6.7% to $22.9 billion, compared with analyst expectations of roughly $22.3 billion. Adjusted earnings reached $1.69 per share, exceeding consensus estimates.
UPS now expects approximately $92.6 billion in full-year revenue, up from its previous forecast of about $91.2 billion.
Adjusted earnings are expected to reach approximately $7.28 per share.
The improvement comes as UPS restructures its delivery network around more profitable business while deliberately reducing its exposure to lower-margin Amazon shipments.
The company has also been cutting costs and increasing automation across its network.
That strategy means UPS is increasingly emphasizing the profitability of each package rather than maximizing shipment volume.
The results provide evidence that the approach is beginning to improve financial performance even as the company handles fewer lower-return deliveries.
UPS shares rose in premarket trading following the results.
The timing is significant because the company is entering the critical holiday shipping season, traditionally one of the busiest periods for parcel-delivery companies.
Investors will now watch whether stronger pricing and network efficiency can sustain earnings growth through the holiday period and whether UPS can continue reducing costs without weakening service levels or longer-term growth.
