Shares of United Parcel Service (NYSE: UPS) are up 8.5% in pre-open trading Tuesday after the company reported extremely strong results for its first quarter.

Revenue soared 27% to $22.9 billion to top the $20.49 billion expected from the surveyed market analysts. On an adjusted basis, the company earned $2.77 per share to smash the consensus of $1.72 per share.

U.S. domestic revenue jumped by 22% to $14.01 billion, again higher than the FactSet median estimate of $12.93 billion. The company also witnessed strong growth in the international sector where revenues grew 23% to $4.61 billion vs $4.13 billion expected.

“During the quarter, we continued to execute our strategy under the better not bigger framework, which enabled us to win the best opportunities in the market and drove record financial results,” said Carol Tomé, UPS chief executive officer.

On the guidance front, UPS said it expects the UPS Freight transaction to close in 2Q21. Moreover, 2021 CAPEX is anticipated to be about $4 billion while the company expects to reduce debt by $2.5 billion. Finally, UPS expects the effective tax rate to be at about 23.5%.

Cowen analyst Helane Becker praised an “impressive” quarter delivered by UPS, driven by strong volume growth and margin expansion across all segments.

“The company continues to see strong revenue growth across all segments on higher volumes and better pricing. While average cost per package outpaced our estimates in US Domestic, high demand and operating leverage led to significant margin expansion and strong operating profit performance. SMB recovery should remain a near-term tailwind, and we expect benefit from continued mix shift in coming quarters,” Becker wrote in a memo released after the earnings report.

She rates UPS as “Market Perform” with a price target of $170.00 per share, which is below the indicated pre-open price of $191.50.

“We rate UPS Market Perform because, in our view, the company is in a strong competitive position as the economic recovery takes shape. As UPS is highly dependent on macroeconomic conditions, a downturn in either the domestic US or global economy would adversely impact the stock. We believe the stock is fairly valued at current levels.”