The shares of United Parcel Service jumped 13% on Tuesday after the logistics company issued a positive outlook for the year after a solid fourth quarter.

Consolidated revenue increased by more than 11% to approximately $28 billion in the fourth quarter, owing to increasing volumes and price hikes. The average revenue per piece increased by more than 11%.

Carol Tome, who took over as CEO in June 2020, has focused the company on better profits rather than bulk clients looking for discounts. The company was able to achieve a 35% increase in quarterly EPS to $3.59 as a result of this strategy, as it earned more on both domestic and international packages, taking advantage of high demand for its services while many geographies continue to struggle with COVID-led supply chain issues.What do you think of the new UPS van? | Top Gear

The business expects consolidated revenue of around $102 billion for the whole year, up from $97 billion in 2021. The adjusted operating margin is expected to rise to 13.7%.

The company's decision to increase its quarterly payout by 49% is also contributing to the stock's rise. UPS also announced that it will buy back at least $1 billion in stock this year.