The parcel delivery service was helped by an increase in profit margins and overseas business, with total shipments up 2.1%, reaching 1.1 billion deliveries. UPS posted earnings of $1.35 per share, beating the expected $1.26 per share and up from last year's $1.21. Revenue was down to $14.1 billion, missing estimates of $14.5 billion.
The strong dollar drove up U.S. imports and operating profit rose 17% on the back of distribution improvements and new pricing initiatives. However, the Atlanta company continues to feel headwinds from the strong dollar and sluggish growth domestically in light of the expected U.S. interest rate hike.
Chief Financial Officer Richard Peretz praised the company's performance in a statement: "Even though the U.S. economy appears to be growing at a slower pace, our global portfolio and performance reinforces our expectations to attain the higher end of the guidance range."
UPS is still expecting full-year 2015 earnings to range from $5.05 to $5.30. Wall Street expects earnings of $5.19 per share for the year. UPS shares are up over 5% to $100 on the earnings news but are down nearly 15% this year.
The company announced last month it would acquire the Insured Parcel Services branch of G4S International Logistics to help protect valuable items being shipped. The delivery giant is also in talks to buy a stake in the Chicago-based Coyote Logistics for around $1.8 billion, according to Reuters. The acquisition would provide further strength and increase efficiency to the company's domestic distribution network.