UPS reported third-quarter revenue of $22.9 billion, up 6.7%, in its October 27 results. It raised its full-year revenue outlook to approximately $92.6 billion. Reported diluted earnings were $1.37 a share, compared with $1.69 on the company's adjusted basis. The release separates the reported result from adjustments, an important distinction when assessing the strength of the improvement ahead of the holiday shipping quarter.

FinMarket analysis: Growing sales provide a better operating starting point, but they do not settle the quality-of-growth question. A delivery network must match labor, sorting capacity and transport costs to uneven demand. Better parcel mix and network use could support profitability; extra volume that is costly to serve could do less for earnings. The useful test is whether revenue gains translate into cash generation after the work required to deliver them.

What to watch: Compare holiday-quarter revenue with reported operating margins, cash flow and the explanation of adjustments. Management's outlook remains a forecast, not booked revenue. Fuel costs, service requirements and the distribution of demand across the network could change the result. A durable recovery would show up in several operating measures rather than in the headline growth rate or adjusted earnings alone.