UPS posts earnings of $1.12 a share vs. $1.09 expected

United Parcel Service (UPS) employee Eric Brooks scans a package while making a delivery in Washington, D.C.
Andrew Harrer | Bloomberg | Getty Images

United Parcel Service delivered quarterly earnings that topped analysts' estimates on Tuesday, but revenue came in shy of expectations.

Shares of UPS moved higher in premarket trading following the announcement. (Get the latest quote here.)

UPS reported a higher quarterly net profit, which rose thanks to price increases and productivity improvements.

The world's largest package delivery company posted a first-quarter net profit of $1.03 billion or $1.12 per share, up 10 percent from $911 million or 98 cents per share a year earlier.

Revenue rose to $13.97 billion from $13.78 billion a year ago.

Wall Street expected the delivery giant to post profits of $1.09 per share on revenue of $14.27 billion, according to a Thomson Reuters consensus estimate.

UPS shares lagged the performance of rival FedEx, another package delivery giant. UPS stock is flat during the last year, while FedEx shares have risen 26 percent, according to FactSet.

CNBC's Terri Cullen and Reuters contributed to this report.