Categories AlphaGraphs, Earnings

Union Pacific Q2 profit rises 4%, beats estimates

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.

Union Pacific Q2 profit rises 4% beats estimates

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

Context Therapeutics: Another clinical-stage oncology research firm to go public soon

The US primary markets seem to be having a record-breaking start to the year, with over $171 billion raised in the first half of 2021 compared to $168 billion for

Biogen (BIIB) Stock: Does FDA nod for Aduhelm offer a buying opportunity?

The pharmaceutical industry has been witnessing hectic activity for some time, with most drug makers either channelizing their resources for vaccine development or engaging in COVID care programs. Biotechnology giant

IPO News: Monte Rosa Therapeutics will go public this week, here are a few things to know

Biotechnology company Monte Rosa Therapeutics is slated to go public this week. In a pandemic-ridden world, this industry is expanding at a healthy pace. The global biotechnology market is estimated

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top