5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
Investing.com -- Union Pacific Corporation (NYSE: UNP) reported third-quarter adjusted earnings per share of $3.08, exceeding analyst estimates of $2.99, while revenue came in slightly below expectations at $6.24 billion compared to the consensus estimate of $6.25 billion.
The railroad operator’s revenue increased 3% YoY, driven by solid core pricing gains, partially offset by lower fuel surcharge revenue. Freight revenue excluding fuel surcharge grew 4% compared to the same quarter last year. Following the earnings release, Union Pacific shares fell 1.2% in premarket trading.
"Our third quarter results serve as a proof point that we are successfully executing on our strategy," said Jim Vena, Union Pacific Chief Executive Officer. "We have a historic opportunity with the Norfolk Southern to create America’s first transcontinental railroad."
Union Pacific reported an operating ratio of 59.2%, an improvement of 110 basis points from the year-ago period. On an adjusted basis, the operating ratio was 58.5%, showing a 180 basis point improvement. The company achieved several operational records during the quarter, including best-ever marks for terminal dwell, train length, workforce productivity, and fuel consumption rate.
The company’s freight car velocity improved 8% to 226 daily miles per car, while locomotive productivity increased 4% to 140 gross ton-miles per horsepower day. Average terminal dwell time improved 9% to 20.4 hours, and average train length increased 2% to 9,801 feet.
For its 2025 outlook, Union Pacific expects earnings per share growth consistent with attaining its three-year compound annual growth rate target of high-single to low-double digits, along with industry-leading operating ratio and return on invested capital.