United Parcel Service (UPS) shares rose as the company reported third-quarter results above analysts' expectations Thursday morning.

The shipping giant reported revenue of $22.2 billion, better than the $21.94 billion consensus estimate of analysts compiled by Visible Alpha. Net income came in at $1.54 billion, or $1.80 per share, above projections, which called for $1.36 billion and $1.59 per share.

Thursday's results mark the first time in nearly two years that UPS returned to posting year-over-year revenue and profit gains, after it and shipping rival FedEx (FDX) each reported declines following peaks in shipping demand during the pandemic.

"After a challenging 18-month period, our company returned to revenue and profit growth," UPS Chief Executive Officer (CEO) Carol Tomé said. "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."

UPS Lowers FY Revenue Outlook

The company also lowered its full-year revenue outlook, estimating total revenue of about $91.1 billion, down from $93 billion previously.

UPS shares, which rose over 5% soon after the results were released, are down a bit over 10% this year. Earlier this week, they fell 3% as the stock was downgraded to "underweight" by Barclays analysts, who cited FedEx's disappointing recent earnings report and outlook, as well as shipping competition from Amazon (AMZN), as reasons to be cautious.

UPS is gaining a new revenue stream for the fourth quarter and beyond, as its new contract to be the primary air cargo provider of the U.S. Postal Service started in late September.

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