UPS (United Parcel Service) beat Wall Street estimates for the third quarter and outlined progress on a turnaround that includes about 48,000 job cuts.
Shares rose more than 7% in afternoon trading Tuesday.
UPS reported net income of $1.31 billion, or $1.55 per share, for the quarter ended Sept. 30, down from $1.99 billion, or $1.80 per share, a year earlier. Excluding one-time items, earnings were $1.74 per share, above the $1.31 expected by analysts polled by Zacks Investment Research.
Revenue was $21.42 billion, topping the $20.84 billion forecast.
In a regulatory filing, UPS said it eliminated about 34,000 operational roles and closed daily operations at 93 leased and owned buildings in the first nine months of the year. It also announced roughly 14,000 additional job cuts, mostly in management, and said more site closures are being evaluated.
In April, UPS said it planned to cut about 20,000 jobs and close more than 70 facilities as it reduces the number of Amazon shipments it handles. At the time, it expected to shutter 73 buildings by the end of June and noted the network review was ongoing.
In January, UPS said it reached a deal with Amazon, its largest customer, to reduce Amazon volume by more than 50% by the second half of 2026. On the fourth-quarter earnings call in January, CEO Carol Tomé said UPS reassessed the decades-long partnership when the contract came up this year.
The company said it realized about $2.2 billion in cost savings as of Sept. 30 and expects total year-over-year savings of $3.5 billion in 2025.
