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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$7.20 bln

$7.12 bln (20 Analysts)

Q3 Adjusted EPS

Beat

$3.53

$3.47 (23 Analysts)

Q3 EPS

$3.49

Q3 Net Income

$2.08 bln


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.)

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