United Parcel Service Inc (NYSE:UPS) shares gained more than 5% after the parcel delivery company’s third quarter earnings came in ahead of expectations.
The company posted an operating profit was $2 billion, marking a 47.8% jump year-over-year.
Adjusted diluted earnings per share (EPS) improved by 12.1% to $1.76, topping estimates of $1.65.
Revenue was $22.2 billion for the quarter, up 5.6% from the year-ago quarter and in line with Street estimates.
In its US Domestic Segment, a 5.8% increase in revenue was driven by increased daily volumes, as an increase in revenue per piece drove a 3.4% increase in revenue for its International Segment.
Supply Chain Solutions revenue grew 8% year-over-year, attributed to growth in air and ocean forwarding and the continued onboarding of USPS air cargo.
“After a challenging 18-month period, our company returned to revenue and profit growth,” UPS CEO Carol Tomé said in a statement.
“Peak season is nearly upon us, and we are ready to deliver another successful holiday season and continue the progress we demonstrated in the third quarter.”
UPS also updated its full-year revenue and operating margin targets to reflect its third quarter results and its completed disposition of Coyote Logistics.
Full-year revenue is expected to be $91.1 billion, short of the $92 billion consensus, and margins are expected to be approximately 9.6%.
UPS shares were up 5.2% at about $138 late morning on Thursday.