The United Parcel Service (UPS) returned to revenue and profit growth in its third quarter for the first time in nearly two years, showing signs of a strong economy gearing up for the festive season.
According to the latest trading update, the global shipping service reached $24.4 bn (£18.8 bn) in revenue, a 4.2 per cent increase from the last quarter.
Operating profit also jumped by 15.5 per cent, driven by an uptick in shipping volumes and new optimised pricing strategies.
This has pushed up its shares by 5.28 per cent today, to $138.35 (£106.61).
UPS attributed its positive results to the success of its cost-cutting initiatives and international demand, particularly in European and Asian markets.
AJ Bell commented: “if you want an indication of how strong an economy is, following the cardboard boxes is a pretty good metric”.
As e-commerce remained a growth driver, UPS’s domestic package revenue rose to $14.5m (£11.2m) , while supply chain solutions improved.
“UPS has carried more parcels over the past quarter than had been expected in a rebound that bodes well as we head towards the crucial Christmas period”.
Carol Tomé, UPS chief executive officer, said: “After a challenging 18-month period, our company returned to revenue and profit growth”.
She continued: “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.”
However, UPS’s stock price has slumped by 12.62 per cent year to date, as it currently stands at $138.35 (£106.60).