Core Insights - United Parcel Service (UPS) reported better-than-expected results, indicating progress in its efforts to rebuild margins and stabilize volumes after a challenging year [1][2] - The company's shares rose 12.1% in premarket trading, reflecting positive investor sentiment following the earnings report [1] - UPS projected fourth-quarter revenue of approximately $24 billion, surpassing analysts' expectations of $23.8 billion [2] Financial Performance - UPS reported an adjusted profit of $1.74 per share for the three months ended September 30, exceeding analysts' average expectations of $1.30 [7] - The company achieved consolidated revenue of $21.41 billion, which was above the expected $20.83 billion [7] - The adjusted consolidated operating margin improved to 10%, up from 8.8% in the second quarter [7] Strategic Initiatives - UPS is focusing on rate hikes, cost cuts, and prioritizing high-margin shipments to stabilize its business ahead of the holiday season [3] - The company is reducing the number of packages delivered for its largest customer, Amazon.com, to enhance profit margins [4] - UPS is undergoing a significant overhaul aimed at cutting $3.5 billion in costs by 2025, which includes closing hundreds of facilities and reducing its workforce [6] Market Context - The peak holiday shipping season, which can see UPS's daily average volumes double, runs from November to the end of January [5] - UPS's performance is contrasted with FedEx, which has also been cutting costs to protect margins and recently reported quarterly results above expectations [6]