Omaha, Neb.-based Class I railway Union Pacific reported earnings per share of $1.45 for the quarter, up from $1.17 per share a year prior and surpassing the Zacks consensus estimate of $1.37 per share.
Union Pacific Corp. posted a net income of $1.2 billion on operating revenues of $5.3 billion for the second quarter of 2017, up 19 percent and 10 percent year-over-year, respectively, according to the company’s latest financial statements.
The Omaha, Neb.-based Class I railway’s earnings per share (EPS) reached $1.45 for the quarter, up from $1.17 per share a year prior and surpassing the Zacks consensus estimate of $1.37 per share.
Volume, as measured by total revenue carloads, rose 5 percent from the second quarter of 2016. “Volume increases in coal, industrial products, agricultural products and intermodal more than offset declines in chemicals and automotive,” the company said.
Union Pacific’s operating ratio totaled 61.8 percent for the quarter, improving 3.4 percentage points from the second quarter 2016’s operating ratio of 65.2 percent, partly driven by higher fuel prices.
Looking ahead, Lance Fritz, Union Pacific chairman, president and chief executive officer said, “Absolute business volumes should be stronger in the second half than the first half, although year-over-year comparisons will be more challenging. In this environment, we will focus on our growth opportunities. In addition, we will continue to make progress on our G55 + 0 initiatives as we work to make Union Pacific a stronger, more efficient company. We are confident these efforts will generate top-line growth, margin improvement and greater returns for our shareholders.”
UP Q2 2017 earnings speeds past analyst expectations
