United Parcel Service (UPS) saw a surge in shares after posting better-than-expected quarterly results, with an early sign of progress in its overhaul that included cutting 48,000 jobs this year. This comes after a challenging year with issues like Trump’s tariff policy and reduced e-commerce shipment demand.

Despite a 12.3% drop in average daily volume, UPS’ small package delivery business showed a 9.8% increase in revenue per piece and a rise in operating profit. The company also projected revenue of $24 billion for the crucial fourth quarter, expecting a surge in holiday deliveries.

UPS has been closing facilities and cutting jobs to save $3.5 billion by 2025. The company reported an adjusted profit of $1.74 per share for the third quarter, surpassing analysts’ expectations. UPS also reported consolidated revenue of $21.4 billion, above expectations of $20.8 billion.

The results released on Tuesday alleviated concerns about a potential dividend cut for UPS. The company aims to reduce costs through its overhaul, while rival FedEx does not face the same workforce challenges. Analysts noted that expectations were low ahead of the report, but positive fourth-quarter revenue guidance could attract investors.

Read more at Yahoo Finance: UPS profit tops forecasts as turnaround effort delivers early results