United Parcel Service reported better-than-expected quarterly earnings as the parcel delivery company raised prices to cash in on a boom in the e-commerce industry.
Since taking charge of UPS in June 2020, Chief Executive Officer Carol Tome has pushed the company to adopt a "better, not bigger" strategy, which prioritizes lucrative deliveries over volume.
UPS has also sharpened its focus on industry segments that generate more revenue and profit, including healthcare companies and small- and medium-sized businesses (SMBs).
"The agility of our network and the continued execution of our strategy delivered another quarter of strong financial performance, putting us on our way to achieving our 2022 consolidated financial targets," Tome said in a statement.
Shares of the Atlanta-based company rose 3.4% in premarket trading.
UPS posted first-quarter adjusted earnings of $3.05 per share, compared with average analysts' expectations of $2.88 per share, according to Refinitiv data.
The delivery company reaffirmed its full-year revenue forecast of about $102 billion. It expects consolidated adjusted operating margin of about 13.7% and adjusted return on invested capital above 30%.
UPS posted quarterly revenue of $24.4 billion, beating analysts' expectations of $23.78 billion, according to IBES data from Refinitv.
Revenue from its domestic segment rose 7.7% to $15.1 billion.
UPS said it planned to double its share buyback in 2022, taking the target to $2 billion for the year.