OMAHA, Neb. - Union Pacific Corporation (NYSE:UNP) reported third quarter earnings that narrowly missed analyst estimates, sending shares down 2.6% in premarket trading Thursday.
The railroad operator posted earnings per share of $2.75, falling short of the $2.78 consensus forecast. Revenue came in at $6.09 billion, below expectations of $6.14 billion but up 3% year-over-year.
Union Pacific's operating income rose 11% to $2.4 billion as the company improved efficiency, with its operating ratio improving 310 basis points to 60.3%. Total revenue carloads increased 6% compared to the prior year quarter.
"Our third quarter results demonstrate the success of our strategy," said Union Pacific CEO Jim Vena. "Improved safety and service performance supported solid revenue growth that we converted into double-digit improvement in third quarter operating income and earnings per share."
For the fourth quarter, Union Pacific expects results to be consistent sequentially from Q3 while improving year-over-year versus Q4 2023. The company affirmed its outlook for continued profitability momentum, share repurchases of about $1.5 billion in 2024, and pricing exceeding inflation.
Despite the mixed results, Union Pacific maintained its $3.4 billion capital plan for the year and long-term capital allocation strategy.
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