Union Pacific Corporation Reports Third Quarter Earnings

OMAHA, Neb. – Union Pacific Corporation (NYSE:UNP) reported third quarter earnings that narrowly missed analyst estimates, resulting in a 2.6% decline in premarket trading on Thursday.

The railroad operator posted earnings per share of $2.75, falling short of the $2.78 consensus forecast. Revenue reached $6.09 billion, below the expected $6.14 billion, but marked a 3% increase year-over-year.

Union Pacific's operating income rose 11% to $2.4 billion, driven by improved efficiency, with its operating ratio improving by 310 basis points to 60.3%. Total revenue carloads increased 6% compared to the same quarter last year.

> "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 improvements in third quarter operating income and earnings per share."

For the fourth quarter, Union Pacific expects results to be consistent sequentially from Q3 while showing year-over-year improvements compared to Q4 2023. The company affirmed its outlook for continued profitability momentum, with share repurchases of about $1.5 billion in 2024 and pricing that exceeds 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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