UPS Stock Surges as Cost-Cutting Measures Boost Quarterly Results
United Parcel Service (UPS) shares jumped 7% to a three-month high after the shipping giant surpassed Wall Street expectations with its third-quarter earnings. Adjusted profits reached $1.74 per share on $21.42 billion in revenue, beating estimates of $1.31 EPS and $20.89 billion. The outperformance stems from aggressive cost reductions, including 34,000 job cuts and the closure of 93 facilities under its "Efficiency Reimagined" initiative.
Investors responded positively to UPS's restored fourth-quarter guidance, interpreting it as a sign of stabilizing operations. The company's focus on streamlining processes and right-sizing its network demonstrates a clear path to improved margins despite a 3.7% year-over-year revenue decline. Market sentiment suggests confidence in management's ability to navigate macroeconomic headwinds through structural efficiencies.
