Union Pacific Q3 revenue, adj EPS beat on volume growth & pricing gains

Overview

• US freight railroad's Q3 revenue rose 15%, beating analyst expectations

• Adjusted EPS for Q3 increased 15%, beating analyst expectations

• Company cites 6% volume growth, pricing gains, and operational execution for record results

Outlook

• Union Pacific expects reported EPS growth of high-single digit, in line with 3-year CAGR target

Result Drivers

• VOLUME AND PRICING - Co said revenue growth was driven by 6% volume growth, core pricing gains, and higher fuel surcharge

• OPERATIONAL EFFICIENCY - Co cited record workforce productivity, longer train length, and improved fuel consumption rate as supporting volume growth

• FUEL COSTS - Co said higher fuel prices negatively affected operating ratio

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the ground freight & logistics peer group is "buy"

• Wall Street's median 12-month price target for Union Pacific Corporation is $333.00, about 15.7% above its October 21 closing price of $287.87

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads

• Oct 21 - CSX Q3 revenue beats estimates on higher fuel surcharges, freight volumes and pricing

• Oct 21 - Knight-Swift Q3 revenue, EPS beat analyst expectations on pricing gains

• Oct 20 - Truckload carrier Heartland Express' Q3 operating revenue falls more than expected

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)