UPDATE 2-UPS profit tops estimates, holiday outlook unclear

* Profit of 55 cents/shr tops 52 cent consensus

* Revenue down 14.9 pct

* Sees Q4 profit of 58 cents/shr to 65 cents/shr

* Says holiday outlook unclear

* Shares down less than 1 percent (Adds comparison to estimates)

BOSTON, Oct 22 - United Parcel Service Inc, the world's largest package delivery service, recorded a 43 percent drop in earnings that nonetheless topped analysts' forecasts, saying that cost cutting helped its profit margins.

But the company said the outlook for holiday season -- when it transports orders from major retailers as well as consumer shipments -- remains unclear. Its shares eased less than 1 percent to $56.65 in premarket trading.

"Our customers have widely differing views on their outlook for the holiday season," said Kurt Kuehn, UPS's chief financial officer.

UPS said on Thursday third-quarter profit came to $549 million, or 55 cents per share, compared with $970 million, or 96 cents per share, a year ago.

Revenue tumbled 14.9 percent to $11.15 billion.

Analysts, on average, had looked for profit of 52 cents per share on $11.17 billion in revenue, according to Thomson Reuters I/B/E/S.

The company said it expects fourth-quarter earnings of 58 cents to 65 cents per share. Wall Street had expected fourth-quarter profit of 63 cents a share.

Atlanta-based UPS's main rival, FedEx Corp, last month said the economy appeared to be stabilizing and it would raise its prices an average of 5.9 percent next year.

Because they handle a large chunk of the consumer and commercial packages that crisscross the country each day, UPS and FedEx are regarded as bellwethers of the economy.

As of Wednesday's close, UPS shares have risen about 5 percent, trailing the 11 percent climb of the Dow Jones transportation average.