Union Pacific Corporation (NYSE: UNP) reported a 4% increase in earnings for the second quarter of 2019 helped by lower operating expenses. The bottom line exceeded analysts’ expectations while the top line missed consensus estimates.
Net income increased by 4% to $1.57 billion or $2.22 per share. Operating revenue declined by 1% to $5.6 billion.
The business volume, as measured by total revenue carloads, decreased by 4%. The growth in industrial volumes were more than offset by flat agricultural products shipments as well as declines in energy and premium.
Freight revenue decreased by 2% year-over-year, as core pricing gains were offset by lower volumes. Agricultural products increased by 4% and industrial grew by 4%, while premium declined by 2% and energy fell by 13%.
The $2.21 per gallon average quarterly diesel fuel price in the second quarter was 4% lower than the previous year quarter. Quarterly freight car velocity was 195 daily miles per car, a 4% improvement compared to the year-ago period.
Looking ahead into the full year 2019, the company expects capital expenditures of about $3.2 billion. Operating ratio is still expected to be at a sub-61% in 2019. In the second half of 2019, volumes are anticipated to be down around 2%.
Also read: Kansas City Southern Q2 earnings preview
The company looks forward to building on the momentum from Unified Plan 2020. Union Pacific remained focused on driving increased shareholder returns by appropriately investing capital in the railroad and returning excess cash to its shareholders.
In rivals, Kansas City Southern (NYSE: KSU) is scheduled to report its earnings results for the second quarter of 2019 on Friday before the market opens. Analysts expect Kansas City Southern’s earnings to jump by 4.50% to $1.61 per share and revenue will rise by 3.50% to $706.23 million for the second quarter.
Shares of Union Pacific ended Wednesday’s regular session 6.05% at $164.55 on the NYSE. Following the earnings release, the stock advanced over 3% in the premarket session.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.
Most Popular
CVX Earnings: Chevron reports lower revenue and profit for Q1 2024
Energy exploration company Chevron Corporation (NYSE: CVX) announced first-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation was $5.50 billion or
ABBV Earnings: AbbVie reports lower adj. profit for Q1 2024; revenue edges up
Specialty biopharmaceutical company AbbVie, Inc. (NYSE: ABBV) Friday announced first-quarter 2024 financial results, reporting a decline in adjusted earnings and a modest rise in revenues. The company reported worldwide net
CL Earnings: Key quarterly highlights from Colgate-Palmolive’s Q1 2024 financial results
Colgate-Palmolive Company (NYSE: CL) reported first quarter 2024 earnings results today. Net sales increased 6.2% year-over-year to $5.06 billion. Organic sales increased 9.8%. Net income attributable to Colgate-Palmolive Company was
Comments
Comments are closed.