What caused UPS's earnings surprise in Q3 2024?

United Parcel Service (UPS) experienced an earnings surprise in Q3 2024 due to a combination of factors that positively influenced its financial performance: 1. **Revenue Growth**: UPS's total revenue for the quarter was $22.25 billion, which exceeded market expectations. This growth was driven by increased consolidated volume, despite a 1.1% decline in revenue per piece due to changes in product mix and customer preferences. 2. **Cost Management**: The company effectively managed its costs, which was a key factor in achieving better-than-expected earnings. For instance, base rates increased, offsetting the impact of lighter weights and shorter delivery zones that decreased revenue per piece. 3. **Operating Profit Improvement**: Although consolidated operating profit was down 29.3% compared to the previous year, it was still higher than expected. This was due to a 0.7% increase in average daily package volume and a return to volume growth in the U.S. after nine quarters. 4. **Strategic Initiatives**: UPS's strategic initiatives, such as the Digital Access Program, generated significant revenue and are expected to contribute further to the company's growth. In summary, UPS's earnings surprise in Q3 2024 was primarily driven by revenue growth, effective cost management, improved operating profit, and strategic initiatives. These factors combined to exceed market expectations and contribute to the company's financial success for the quarter.